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.

A real estate professor weighs in on the future of MLSs

According to research done by Sonia Gilbukh, a real estate professor at Baruch College, there are some reasons to be concerned about the current number of real estate agents and the future of MLSs.

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

Mortgage prepays surge to 6-year high, Black Knight says

The measure of refinancing and homebuying demand has more than doubled from a year ago

Mortgage prepayments, a gauge of refinancing volume and housing market demand, rose to a six-year high in October, according to Black Knight.

The prepayment rate was 1.81%, the highest reading since May 2013, Black Knight said on Monday. That was up 16% from September and more than double compared with October 2018.

Low mortgage rates are spurring people to refinance or to buy new homes, which typically means they pay off their old loans. The average U.S. rate for a 30-year fixed mortgage was 3.69% in October, compared with 4.83% a year earlier, according to Freddie Mac data.

“Prepays are now up 134% year-over-year as refinancing homeowners continue to take advantage of low interest rates,” Black Knight said in a statement.

Existing home sales rose 1.9% in October to a seasonally adjusted annualized rate of 5.46 million, the National Association of Realtors said on Thursday. This put sales 4.6% above October 2018’s rate.

Mortgage originations probably will exceed $2 trillion this year for the first time since 2016, according to a Fannie Mae forecast. Lenders likely will fund $2.06 trillion, the mortgage financier said. The refinancing share probably will be 37%, Fannie Mae said.

The Black Knight report also showed the national delinquency rate, measuring overdue mortgage payments, fell to 3.39% in October, three basis points from the record low set in May.

Measured at the state level, the lowest delinquency rates were in Colorado, at 1.73%, followed by Washington, at 1.81%, and Oregon, 1.86%, the report said.

The states with the highest delinquency rates were: Mississippi at 10%, Louisiana, at 7.72%, and Alabama, at 6.68%.

The five states with the biggest deterioration in their non-current rate were: Iowa, Arkansas, Oklahoma, Indiana and Arizona, the Black Knight report said.

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Existing home sales pop the 2021 housing bubble boys

So far this year, every existing home sales print has been higher in 2021 than the closing level of sales in 2020, which was 5,640,000. Even with the unhealthy home price gains that we have seen in the last two years, more Americans have bought homes with mortgages in 2020 and 2021 than any single year from 2008-2019, and this looks perfectly normal with our current demographics. HW+ Premium Content

Sep 22, 2021 By
3d rendering of a row of luxury townhouses along a street

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