The latest economic and policy trends facing mortgage servicers

Join this webinar for an in-depth roundtable discussion on economic and policy trends impacting servicers as well as a look ahead at strategies servicers should employ in the next year.

2021 RealTrends Brokerage Compensation Report

For the study, RealTrends surveyed all the firms on the 2021 RealTrends 500 and Nation’s Best rankings, asking for annual compensation data for the 2020 calendar year.

Steve Murray on the importance of protecting property rights

In this episode, Steve Murray, RealTrends advisor and industry stalwart, discusses some of the issues facing private property rights, including how a case in Germany could potentially affect U.S. legislation.

Lenders, it’s time to consider offering non-QM products

The non-QM market is making a comeback following a pause in 2020. As lenders rush to implement, Angel Oak is helping them adopt these new lending products.

Mortgage

Low interest rates drive refinances to six-month high

Interest rates fall again

The consistently low interest rates of the last few months have driven an increase in mortgage refinances, according to the latest Origination Insight Report from Ellie Mae.

For the month of October, refinances made up 40% of the total mortgage originations, which marked a six-month high. That’s up from 36% in September. The share of refinances was as low as 32% in July.

October’s jump in refinances reverses a trend that saw the share of refinances fall throughout 2014. In January, for example, the share of refinances was 47%.

For conventional loans closed in October, the share of refinances was 49%, rising to the highest level since February.

“Refinancing activity in October was at the highest level since March of this year, thanks largely to the current interest rate environment," said Jonathan Corr, president and COO of Ellie Mae. "Low rates are creating opportunities for homeowners to either lower their payments or capitalize on their homes’ equity.”

According to Freddie Mac’s latest Primary Mortgage Market Survey, the interest rate for the 30-year, fixed-rate mortgage fell back below 4% for the week that ended Nov. 20, coming in at 3.99%.

By comparison, the 30-year, FRM was 4.22% at this time last year.

According to Ellie Mae’s report, which is derived from a “robust sampling of approximately 57% of all mortgage applications that were initiated on the Encompass origination platform” during a given month, the average 30-year interest rate for all loans fell for the sixth consecutive month to 4.371%, the lowest average since July 2013.

Per Ellie Mae’s report, the 30-year interest rate was 4.75% one year ago.

Ellie Mae also reported that closing rates for purchase loans rose to 66.1%, the highest percentage since Ellie Mae began tracking this data in August 2011.

Despite the increase in refinances, the average time to close a refinance actually dropped from 40 days to 39 days.

Additionally, Ellie Mae’s report also stated that 33% of closed loans in October had an average FICO score of less than 700 compared to 28% in October 2013.

Most Popular Articles

Ex-loanDepot COO: Tony Hsieh cut corners to boost volume

The suit, filed by former COO Tammy Richards, accuses loanDepot CEO Anthony Hsieh of ordering the sales team to “trust [their] borrowers” and close loans, disregarding proper underwriting etiquette. 

Sep 23, 2021 By and

Latest Articles

UWM announces Bolt underwriting system for brokers

In a keynote session about the future of mortgage, UWM CEO Mat Ishbia previewed Bolt, an underwriting system that he said would enable brokers to underwrite a loan in 15 minutes or less, which will go live on Monday, Sept. 27.

Sep 25, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please