An Insider’s Look Into How Secondary Marketing Evaluates LOs

In this webinar we’ll explore the long-term financial impacts of renegotiations, extensions and fallouts, plus basic guidelines to be viewed as a professional by your secondary marketing department

HousingWire Annual Virtual Summit

Did you miss out on HousingWire Annual? We have you covered! Join us virtually on October 25 for a chance to see hand picked sessions from our in-person HousingWire Annual in Frisco. Register now for FREE!

How brokers can help today’s unique borrower

The average borrower has drastically changed throughout the years. More borrowers are self-employed, work remotely and have multiple streams of income. Learn about the tools to assist any borrower quickly and effectively.

Experts on how AI makes a difference in the mortgage process

Today’s HousingWire Daily features a roundtable discussion on “Humans versus really smart machines” and what the right mix looks like to gain efficiencies in the mortgage loan manufacturing process.

Mortgage

Still many refi opportunities out there, new report finds

There was a 34% increase in consumers searching for “rate-and-term” in the third quarter

There is still ample opportunity in the market for lenders to rope in refi business, according to a quarterly report published Monday by Sales Boomerang. And the reason for this is two-fold.

The report – which is compiled using data sourced from more than 150 residential mortgage lenders –  found that one in 12 borrowers saw “significant home equity growth” in the third quarter.

Plus, the frequency of borrowers searching for the phrase “cash-out” increased by almost 300% from Q2 to Q3. The behavioral data analytics firm says these developments point to the fact that “borrowers have grown their credit scores alongside their equity, paving the way for more cash-out refinance and HELOC activity in the coming months.”

Additionally, there was a 34% increase in consumers searching for “rate-and-term” in the third quarter, showing a continued interest in getting a refi, Sales Boomerang said in its report.

However, the company also noted that the refi opportunities still out there are not low-hanging fruit and will require lenders “to be proactive in reaching out to potential refi customers, as many eligible customers do not appear to be shopping for rates on their own.”


Keep Up With the Latest Third Party Origination News

Want to stay up to date with the latest on the third party origination front? We designed a specific news hub with lenders and brokers in mind, with Rocket Pro TPO leading the discussion.

Presented by: Rocket Pro TPO

Sales Boomerang concluded this based on the decline in customers looking up mortgage information (5.27%, down 10.22% from Q2) and early pay offs (2.23%, down 8.23% from Q2).

The analytics vendor also threw a bit of a wrench at predictions voiced by market experts that a home purchase boom is imminent in late 2021, with the firm finding a 24% quarter-over-quarter dip in “new listing” alerts. Sales Boomerang suggested that “lenders may need to revise their year-end revenue forecasts.”

Alex Kutsishin, CEO of Sales Boomerang, said in a statement that refi activity has indeed started to slow and the purchase market “has not yet picked up the slack.”

“Still, the big-picture view says we are still in the midst of a housing boom,” he said. “Ample purchase and refinance opportunities remain, and our data intelligence points to myriad ways lenders can improve borrowers’ financial position with the right loan product.”

One of the ways for lenders to do this is by reaching out to FHA borrowers “with mortgage insurance [who] are unaware they have the option to remove their MI once they reach 20% equity,” the report said.

From Q2 to Q3 there was a 366% quarter-over-quarter increase in “FHA MI removal” alerts and “lenders have the opportunity to deliver immediate monthly savings to borrowers,” the report added.

Leave a comment

Most Popular Articles

Fannie Mae: Mortgage rates and home prices will rise in ’22

Economists at Fannie Mae expect higher mortgage rates and home prices next year due to higher inflation, a tightening of monetary policy, and low home inventory

Oct 15, 2021 By

Latest Articles

Forbearance heading one direction: down

Forbearance declined across the board this week as government agencies and industry stakeholders chart a path out of forbearance and into loss-mitigation.

Oct 18, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please