Now that most of the nation's biggest mortgage players have put out their earnings numbers for the third quarter, investment bank FBR Capital Markets says its mortgage banking forecasts--$1.6 billion for 2013 originations followed by $1.4 billion in 2014--are still well within reach. Examining the reports, FBR says the third quarter was a case of "more of the same, with anemic loan growth ... weak mortgage banking, and lack of top-line expansion as the more notable items."
Read More »Settlement Monitor Releases Update on Servicers’ Progress
Joseph A. Smith, the monitor overseeing fulfillment efforts put forward by each servicer involved in the National Mortgage Settlement, has issued a report on their progress satisfying consumer relief obligations outlined in the agreement. Smith's report covers servicer activities through December 31, 2012, which have been vetted and verified by the Office of Mortgage Settlement Oversight. Each servicer's internal review group provided Smith with information on the servicers' crediting progress in February of this year.
Read More »HARP Share Rises in August, GSE Refinances Decline
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.
Read More »Purchase Loan Share Climbs to 58% in September
Purchase share continued to inch up in September as refinances receded, according to data presented by Ellie Mae in the company's Origination Insight Report.
Read More »Refinances Continue to Lift Application Volume
The Mortgage Bankers Association's (MBA) Market Composite Index increased 0.3 percent on a seasonally adjusted basis for the week ending October 11.
Read More »Specialty Servicers Swoop in as Big Banks Relinquish Market Share
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.
Read More »Survey: Half of HARP Refinances Were Denied Previously
Demonstrating the extent to which eligibility has opened up in the last year, a new survey from loanDepot.com shows more than half of homeowners who recently refinanced through the Home Affordable Refinance Program (HARP) had been turned down for the program previously. Reforms announced in December 2011 removed many restrictions from the program, granting access to previously ineligible homeowners. The expanded "HARP 2.0" removed the ceiling on eligible loan-to-value ratios--welcome news for the most severely underwater borrowers.
Read More »Resurgence in Refinances Lifts Application Volume
The Mortgage Bankers Association (MBA) reported on Wednesday an increase in mortgage application volume to start October. According to data in MBA's Weekly Mortgage Applications Survey, loan application volume increased 1.3 percent (seasonally adjusted) for the week ending October 4. After tumbling for most of the summer, MBA's Refinance Index increased 3 percent week-over-week, rising to its highest level in almost two months. The Purchase Index fell, meanwhile, dipping 1 percent.
Read More »Investment Firm Projects Weak Q3 for Mortgage Banks
Investment bank FBR's third-quarter mortgage originations estimate is $349 billion, a 29 percent decline over the quarter. The abating refinance market is a major drag on the mortgage industry, and, "[w]e do not believe that there will be a strong enough increase in the purchase market this quarter to offset the loss in refi volume," FBR stated. FBR estimates a 46 percent decline in refinances in the third quarter and a 2 percent rise in purchase originations.
Read More »Mortgage Rate Hikes Drain Pool of ‘Refinancible’ Loans
According to Lender Processing Services' data, the monthly prepayment rate--historically a good indicator of refinance activity--has dipped more than 30 percent in the months since May, with mortgage interest rates climbing nearly 100 basis points in that same time. As a result of those shifts, the percentage of borrowers in loans with interest rates high enough for refinancing to make sense has dropped significantly, says Herb Blecher, SVP for the technology and analytics firm.
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