The MReport Webcast: Monday 10/5/2015

Cash-out refinance volume rose nearly 70 percent year-over-year in the second quarter of 2015, as borrowers took advantage of the increased equity available to them and historically low mortgage interest rates. Black Knight Financial Services, Inc., Data & Analytics division latest Mortgage Monitor Report found cash-out refinances rose 68 percent year-over-year, the highest volume since 2010. However, cash-out refinances still remain 80 percent under peak levels recorded in 2005.

On average, borrowers are pulling out an average of 67 thousand dollars of equity through cash-out refis, with resulting average LTVs are at 68 percent, the lowest in 10 years. Less than 10 percent of all cash-out refinances have LTVs above 80 percent, also at the lowest level in over 10 years. Meanwhile, almost 60 percent of cash-out refinance volume is coming from borrowers with UPBs under 200 dollars.

The House of Representatives will vote next week on a bill that will provide a hold harmless grace period for the Consumer Financial Protection Bureau's TILA-RESPA Integrated Disclosure Rule, which is set to go into effect October 3rd. On Wednesday, the House Financial Services Committee passed the Homebuyers Assistance Act, which could make the grace period official.