It was a record year for independent mortgage banks. IMBs and mortgage subsidiaries of chartered banks made an average of $4,202 on each loan they originated in 2020 – up from $1,470 per loan the year before, according to a new report released Tuesday by the Mortgage Bankers Association. The Annual Mortgage Bankers Performance report found: 99 percent of the firms posted overall pre-tax net financial profits in 2020, compared to 92 percent of firms in 2019 and 69 percent of firms in 2018.Average production volume was $4.5 billion (16,198 loans) per company in 2020, up from $2.7 billion (10,411 loans) per company in 2019. The average production profit (net production income) was 157 basis points in 2020, compared to 58…
The number of mortgages in forbearance in the United States dropped to 2.3 million in the latest weekly survey released Monday by the Mortgage Bankers Association. The survey found: Total loans in forbearance decreased from 4.90 percent to 4.66 percent as of April 4.The share of Ginnie Mae loans in forbearance decreased from 6.78 percent to 6.33 percent.The share of Fannie Mae and Freddie Mac loans in forbearance decreased from 2.72 percent to 2.52 percent. It is the sixth straight week that the share of loans in forbearance has decreased, according to MBA. “The accelerating economic recovery in March helped more homeowners recover and become current on their mortgages, in addition to helping other homeowners with more stable financial situations…
A change in the way creditworthiness is determined would increase home-buying opportunities for Black and Latino homebuyers, according to new research released at an event held by National Association Realtors. The research, authored by Ann B. Shnare and Vanessa Gail Perry, examines how reforms to current credit bureau data and scoring models can provide a more wholistic view of a borrower’s credit performance – and increase buying opportunities for Black and Latino borrowers. “Minorities are far more likely to be ‘unscoreable’ or have relatively weak credit scores using traditional credit bureau data,” Dr. Schnare said. “Incorporating additional data into the credit evaluation process can open doors for many deserving borrowers and boost minority homeownership rates.” A 2020 report on homeownership by…
The streak is over. After seven straight weeks of increases, mortgage rates dropped this week as the 30-year fixed-rate mortgage averaged 3.13 percent, according to Freddie Mac’s weekly Primary Mortgage Market Survey released Thursday. The survey found: The 30-year fixed-rate mortgage averaged 3.13 percent with an average 0.7 point for the week, down from last week’s 3.18 percent and last year’s 3.33 percent at this time.The 15-year fixed-rate mortgage averaged 2.42 percent with an average 0.6 point, down from last week’s 2.45 percent and last year’s 2.77 percent.The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.92 percent with an average 0.1 point, up from last week’s 2.84 percent and down from last year’s 3.40 percent. “As the economy recovers, it should…
Mortgage applications slid 5 percent for the week ending April 2 amid higher interest rates, the Mortgage Bankers Association reported Wednesday in its Weekly Mortgage Applications Survey. The Refinance Index decreased 5 percent from the previous week and was 20 percent lower than the same week one year ago. The unadjusted Purchase Index decreased 4 percent compared with the previous week and was 51 percent higher than the same week one year ago. The refinance share of mortgage activity decreased to 60.3 percent of total applications from 60.6 percent the previous week. The adjustable-rate mortgage share of activity increased to 3.7 percent of total applications. “The return of rates to the highest level since last June contributed to a slowdown…
The share of mortgages in forbearance in the United States dipped further below 5 percent at the end of March, with 4.9 percent of borrowers still pausing their payments, according to a new survey released Monday by the Mortgage Bankers Association. Roughly 2.5 million homeowners remain in forbearance plans as of March 28 – with the total share dropping from 4.96 percent to 4.9 percent. The survey also found: The share of Ginnie Mae loans in forbearance decreased from 6.83 percent to 6.78 percent.The share of Fannie Mae and Freddie Mac loans in forbearance decreased from 2.77 percent to 2.72 percent.5.18 percent of independent mortgage bank-managed mortgages are in forbearance, down from 5.23 percent.5.03 percent of bank-manage mortgages are in…
The 30-year fixed-rate mortgage increased for the seventh straight week – but it was a tiny one this week, according to Freddie Mac’s weekly Primary Mortgage Market Survey released Thursday. The survey found: The 30-year fixed-rate mortgage averaged 3.18 percent with an average 0.7 point, up from last week’s 3.17 percent and down from last year’s 3.33 percent at this time.The 15-year fixed-rate mortgage averaged 2.45 percent with an average 0.6 point, unchanged from last week and down from last year’s 2.82 percent.The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.84 percent with an average 0.3 point, unchanged from last week and below last year’s 3.40 percent. “Although mortgage rates remain low, we are beginning to see a pullback by those…
Mortgage applications dropped 2.2 percent for the week, according to the Mortgage Bankers Association’s weekly mortgage applications survey released Wednesday. For the week ending March 26, the Refinance Index decreased 3 percent from the previous week and was 32 percent lower than the same week in 2020. The Purchase Index dropped 1 percent for the week and was 39 percent higher than a year ago. The refinance share of mortgage activity decreased to 60.6 percent of total applications from 60.9 percent the previous week. The adjustable-rate mortgage share of activity increased to 3.4 percent of total applications. “Many prospective homebuyers this spring are feeling the effects of higher rates and rapidly accelerating home prices,” said Joel Kan, MBA’s Associate Vice…
Pending home sales dropped by 10.6 percent in February, with every region of the nation showing significant declines due largely to low inventory, according to a National Association of Realtors report released Wednesday. Not only did sales drop month over month for the second straight month, they dropped 0.5 percent from a year ago as well – breaking a streak of eight months with year-over-year gains. The Northeast Pending Home Sales Index fell 9.2 percent to 92.3 in February, a 3.9 percent drop from a year ago. The Midwest index dropped 9.5 percent to 102.4 last month, down 6.1 percent from February 2020. Pending home sales in the South dropped 13 percent to 133.2 in February, up 2.9 percent from…
Mortgage rates continued their steady climb north of 3 percent this week, with the 30-year fixed-rate mortgage reaching its highest level since last June, according to Freddie Mac’s weekly Primary Mortgage Market Survey released Thursday. The survey found: The 30-year fixed-rate mortgage averaged 3.17 percent with an average 0.7 point, up from last week’s 3.09 percent and down from the 3.50 percent last year at this time.The 15-year fixed-rate mortgage averaged 2.45 percent with an average 0.6 point, up from last week’s 2.40 percent and down from last year’s 2.92 percent.The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.84 percent with an average 0.2 point, up from last week’s 2.79 percent and last year’s 3.34 percent. “During the course of the…
