Items Tagged with 'refinance activity'

ARTICLES

  • More borrowers are raising their mortgage rate to cash out equity

    Cash-outs comprise greatest share of refinances since 2006 peak
    For several months now, cash-out refinances have been eating up a greater share of overall refi volume, and it appears the trend isn't about to slow down anytime soon. The latest report from Black Knight reveals that 82% of refinances originated in Q4 2018 were cash-outs, and that in two-thirds of these transactions, the borrower raised their mortgage rate in order to access their equity in cash.
    Read More
  • Housing market trends are stifling the jumbo mortgage market

    But the WSJ says lenders aren't backing down
    In the years following the financial crisis, mortgage lenders turned their attention to the jumbo mortgage market as high-end clients proved to be a safe and profitable bet. But now, recent trends taken a toll on the jumbo market, causing volume to fall 12% in the last year, a decline that outpaces the overall mortgage market by 5%. "Still, there are few signs banks are changing tack," The Wall Street Journal stated. "If anything, industry watchers say, they are becoming more competitive."
    Read More
  • Kroll says some banks are rethinking viability of mortgage lending business

    Predicts challenging market conditions will have some small retail operations closing up shop
    The mortgage industry has witnessed very few mergers and acquisitions in the last year, despite what Kroll Bond Rating Agency calls a "fertile environment" for M&A activity. Why? Blame low profits and high origination costs. According to KBRA, the climate has some banks rethinking their positions, with some selling of mortgage assets and others simply exiting the business completely.
    Read More
  • Is the refinance market bouncing back? Number of refi candidates jumps 75%

    Refinance demand dried up in the last year, but could a comeback be afoot?
    Refinance demand has essentially dried up in the last year, but could things finally be turning around? Maybe, according to the latest data from Black Knight, which revealed that there are now 3.27 million homeowners who could reduce their mortgage rate by at least 0.75% by refinancing their mortgage. That's the greatest number of potential refi candidates since January 2018.
    Read More
  • Goodbye refi: Rising interest rates all but erase refinance demand

    Purchase loans now make up nearly 75% of all mortgages
    While mortgage interest rates dipped ever so slightly in the last week, they’ve been trending up for the majority of this year. And it appears that the consistent rise in interest rates this year has all but dried up refinance demand. Is it time to say goodbye to refis for a while? It certainly looks that way.
    Read More
  • Wells Fargo: Ginnie Mae warning on VA loan churning is just the beginning

    Analysts expect oversight of VA refinances to intensify
    On Thursday, Ginnie Mae laid down the law, so to speak, in its fight against a segment of mortgage lenders that are aggressively targeting servicemembers and military veterans for quick and potentially risky refinances of their mortgages. But according to analysts from Wells Fargo, Ginnie Mae’s threat of booting lenders from its bond program will not be the agency's last move in its effort to clean up VA loan churning.
    Read More
  • Ginnie Mae threatens to boot lenders from bond program over VA loan churning

    Steps up fight against lenders targeting veterans for quick refinances
    Ginnie Mae is turning up the heat in its fight against a segment of mortgage lenders that are aggressively targeting servicemembers and military veterans for quick and potentially risky refinances of their mortgages. Ginnie Mae is now threatening a small number of lenders with expulsion from its primary mortgage bond program if the lenders do not address the issue.
    Read More
  • Bipartisan group of senators seek more “predatory” lending protections for veterans

    Lenders would be required to show “material benefit” for VA refinances
    Over the last few months, Ginnie Mae and the Department of Veterans Affairs began looking into a segment of mortgage lenders that were aggressively targeting servicemembers and military veterans for quick and potentially risky refinances of their mortgages. But a bipartisan group of senators think both the VA and Ginnie Mae need more legal authority to stamp out the problem entirely.
    Read More
  • Wells Fargo: Here’s the impact of HARP extension, GSEs’ new high-LTV refi program

    Eligibility rules of refi program will limit scope
    After several delays, the government’s crisis-era Home Affordable Refinance Program was finally set to expire next month, until the Federal Housing Finance Agency announced Thursday that it’s extending the HARP deadline until the end of 2018. So what’s the impact of the change? Not much, unless there’s another housing crisis, Wells Fargo said in a new report.
    Read More