Tag Archives: HARP

Origination numbers remained weak through the end of 2013, and the odds of a resurge in refinances boosting volumes don’t look great, either, according to Black Knight Financial Services (BKFS). “In January, we saw origination volume continue to decline to its lowest point since 2008, with prepayment speeds pointing to further drops in refinance-related originations,” said Herb Blecher, SVP of BKFS’ Data & Analytics division.

Examining a sample of applications passing through its network, Ellie Mae reports refinance mortgages made up 47 percent of originations in January, up slightly from December. Refinance share bottomed out at 39 percent in October 2013 and has slowly risen since. The increase in refinances compared to purchase loans matches Freddie Mac’s latest outlook, which observed a “second wind” for remortgaging as interest rates resist lifting factors.

The Federal Housing Finance Agency (FHFA) revealed in its latest refinance report that the GSEs have together reached a landmark three million refinances under HARP.

Borrowers who refinanced last year will save on net about $21 billion in interest over 2014, according to the results of Freddie Mac's latest quarterly refinance analysis. The company's report shows the average interest rate reduction among refinancers in the fourth quarter was about 1.5 percentage points, translating into a savings of about 25 percent. Those who refinanced through the Home Affordable Refinance Program (HARP) during Q4 saw an average rate reduction of 1.7 percentage points, meanwhile.

After loosening steadily for several months, credit standards for mortgage loans ended 2013 at their lowest level all year, according to the December Origination Insight Report from Ellie Mae.

The new year will bring some clarity to the housing market and likely some loosening of credit, though an air of mystery does still surround some aspects of the industry, according to FBR's outlook for 2014. With Mel Watt, a former Democratic senator from North Carolina, taking the helm at the Federal Housing Finance Agency (FHFA) and three openings at the Federal Reserve, some uncertainty persists despite some clarity surrounding Qualified Mortgages (QM) and other regulations in the housing industry.

According to Ellie Mae's data, which draws from a sampling of the loan applications flowing through the company's network, purchase loan share was 61 percent in October.

According to the results of Freddie Mac's latest quarterly refinance analysis, the average interest rate reduction among those who refinanced in Q3 was about 1.8 percentage points, representing a savings of about 30 percent ($3,500 over 12 months on a $200,000 loan). For borrowers who refinanced last quarter, the estimated interest savings over the next year will be about $6 billion. For those who refinanced through the Home Affordable Refinance Program (HARP), the average rate reduction in Q3 was 1.9 percent points.

August's rising mortgage rates continued to impact refinance numbers reported by Fannie Mae and Freddie Mac, according to the Federal Housing Finance Agency's (FHFA) latest data.

After releasing a mortgage origination forecast of $349 billion for the third quarter earlier this week, FBR Capital Markets revised its estimate to between $400 billion and $420 billion for the quarter Wednesday. FBR anticipates a rise in refinances under the Home Affordable Refinance Program (HARP) as small specialty servicing shops are "still playing catch-up" from the recent boom. Meanwhile, larger players are relinquishing some of their market share, according to analysts at the investment bank.