Julián Castro sworn in, spends first day as HUD Secretary

Julián Castro sworn in, spends first day as HUD Secretary

Former San Antonio mayor takes over for Shaun Donovan

Blackstone adviser: Investors worried about ‘serious correction’

Byron Wien still holds his line

It’s official: Zillow will own Trulia

"Better agents make for better advertisers"
W S
Lending / The Ticker

KBW expects slightly lower mortgage origination volume in 2013

/ Print / Reprints /
| Share More
/ Text Size+

The year 2013 will bring strong gain-on-sale margins for the mortgage origination industry, but overall origination volume is likely to hit $1.54 trillion, according to a new report from Keefe, Bruyette & Woods.

That is down slightly from an estimated $1.7 trillion this year, KBW analysts said in a new report.

"Our estimate is roughly in line with other industry sources," analysts with KBW explained. "The Mortgage Bankers Association currently forecasts 2013 volume of $1.3 trillion, and Fannie Mae has a $1.5 trillion estimate. Our estimate includes about $150 billion attributable to HARP 2.0. We expect HARP to continue boosting gain-on-sale margins."

KBW expects mortgage rates to remain low and more enhancements to the government's Home Affordable Refinance Program.

The research firm estimates credit trends will improve but Federal Housing Administration delinquency rates could increase as the portfolio matures.

Expenses related to representation and warranty risks also are expected to drive up mortgage credit costs next year, KBW said.

However, the group added, "We do not expect meaningful political change in the mortgage market in 2013, as GSE reform remains tied up in Congress. However, we expect changes to continue to take place through the Federal Housing Finance Agency (FHFA), the regulator for Fannie Mae and Freddie Mac."

kpanchuk@housingwire.com

Recent Articles by HousingWire Staff

Comments powered by Disqus