The Key to Reducing Post-Refi Boom Borrower Churn

In this webinar, PRMG Chief Lending Officer Kevin Peranio will help attendees sort through the right technologies as he shares the tech investments that have had the biggest impact on his business.

Tracey Velt breaks down the latest RealTrends 500 rankings

During the episode, Velt highlights which brokerages achieved top rankings in both categories for 2020, and shares what stood out to her the most about the rankings.

Navigating Closing Struggles in 2021’s Purchase Market

Join this webinar to discover the most current information on hybrid and full eNote eClosings and discuss key criteria to successfully implementing your eClosing strategy.

Mortgage servicers take steps to support borrowers amid COVID-19

Call volumes have spiked to a level not seen since last April, lenders and servicers need to prepare for a significant increase in their workload as they help borrowers through difficult times.

Mortgage

[Chart] Mortgage standards are not loosening for the refi market

Black Knight: High-credit borrowers driving the purchase market

At first glance, a new industry report from Black Knight Financial Services (BKFS) appears to show that the average credit score for refinance applications is loosening.

However, with further investigation, the truth is that there is only a decrease in the number of high credit score borrowers since most of them likely already refinanced and taken advantage of the low interest rates.

The chart shows that lower credit score origination volumes remain unchanged, while the number of high credit score borrowers is declining.

Click to enlarge

Chart 1

(Source: Black Knight)

On top of all this, refinance originations as a whole have steadily declined since March, showing a 'refi burnout,' as most borrowers who were both interested in and could qualify for refinancing have already done so (and in many cases, numerous times). 

On the other side of the lending table, purchase mortgage originations surged in 2015, with Q2 up 15% over 2014 and Q3-to-date up 11% so far.

And unlike the refi market, high-credit borrowers are driving the surge.

Purchase loan activity among borrowers with less than a 700 score is flat to slightly down on a year-over-year basis.

Only 20% of purchase originations over the last 3 months have come from borrowers with credit scores below 700, the lowest level in over 10 years.

Additionally, weighted average credit score for purchase mortgages has hit a record high of 755.

The chart below shows the surge this year, compared to prior years.

Click to enlarge

Chart 2

(Source: Black Knight)

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