Rate lock volumes took a beating in December as buyers and sellers remained on the sidelines. Black Knight’s December Originations Monitor Report found that typical seasonal patterns, together with continuing inflationary pressures and elevated rates, resulted in record lows for locks of all kinds. “Using Black Knight’s McDash mortgage performance data to provide comparative history, December saw the fewest purchase locks in a single month since early 2014, and the fewest overall rate locks on record dating back to January 2000 when Black Knight began reporting origination metrics,” said Kevin McMahon, president of Optimal Blue, a division of Black Knight. Rate lock dollar volumes fell by 19.4% in December, their lowest level in the five years Optimal Blue has tracked…
Jim Janczy joined NewFed Mortgage as EVP-Chief Production Officer, the company announced in a press release. In his new role, Janczy will be responsible for NewFed’s sales and marketing. He is known for success in startups and building territories, as well as client service that leads to long-term, trust-based relationships. Janczy has received several “Top Producer” awards, and “has earned an impressive loyal following of clients along with a vast network of professional relationships,” the release noted. Janczy brings more than two decades of experience to the position. His most recent role was at Home Point Financial, and his previous experience includes Wells Fargo and Envoy Mortgage. “We are extremely excited to have Jim as part of our company growth…
Lock volumes dipped almost 10% from August, bringing them down 30% in the last three months and 60% YOY, according to Black Knight’s latest Originations Market Monitor. Purchase locks are 10.2% below pre-pandemic levels. This is the third straight month of lock activity below pandemic norms. The decline in locks coincides with interest rates rising 91 basis points in September to 6.72%, their highest point in 15 years. Refinances made up only 16% of September’s lock activity, a new low. Of that, most were cash-out refis, though they are also down 26.2% from August and 78% YOY. Rate/term locks remained basically unchanged. They are down 93.3% YOY, suggesting they’ve hit a floor now. Purchase lending accounted for most of September’s…
Mortgage Lenders lost money on every loan originated for the first time since 2018 in Q2, according to the Mortgage Bankers Association’s (MBA) Quarterly Mortgage Bankers Performance Report. Independent mortgage banks and mortgage subsidiaries of chartered banks lost an average of $82 on each loan they originated in the second quarter of 2022, down from gains of $223 per loan in Q1. The average pre-tax production loss was 5 bps, a complete turnaround from Q1’s average net production profit of 5 bps. Average production volume totaled $705 million per company, down from $808 million in Q1. Only three other quarters in the survey’s history saw net production losses: Q1 2014, Q1 2018, and Q4 2018. “The second quarter of 2022…
Overall residential lending activity dropped 32% YOY, the fastest decline in eight years, according to ATTOM’s Q1 U.S. Residential Property Mortgage Origination Report. The report found that 2.71 million mortgages secured by residential property were originated in Q1 2022. This is a drop from Q4 and the fourth consecutive quarter of declines. Refinances were down 22% and purchase mortgages fell 18% quarter-over-quarter. Lenders originated $892.4 billion in loans in Q1, down 17% from Q4 and 27% YOY. The quarterly dip in dollar volume was the largest in five years, and the annual dip was the largest in eight years. Declining refis drove the declines, with only 1.45 million residential loans refinanced during Q1 2022, down 22% from Q4 and a…
Commercial and multifamily mortgage loan originations rose 72% YOY in Q1 2022, though they were down 39% from Q4 2021 due to seasonality trends, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. “The strong momentum in commercial and multifamily borrowing and lending at the end of 2021 carried into the first quarter,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “The continued growth in lending activity is the result of the ongoing strong demand for certain property types like industrial and multifamily, as well as renewed interest in other property types that saw more dramatic declines during the early stages of the pandemic, such as hotel and retail.” Demand for hotel…
Commercial and multifamily mortgage loan originations jumped in 2021 and are expected to continue booming in 2022, the Mortgage Bankers Association (MBA) reported at its 2022 Commercial/Multifamily Finance Convention and Expo. Originations rose 79% YOY in Q4 2021 and 44% from Q3. A preliminary measure of commercial and multifamily mortgage bankers’ originations volumes found 2021 activity to be 67% higher than 2020’s. “The fourth quarter of 2021 was a record end to a record year of borrowing and lending backed by commercial and multifamily properties,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “Part of the growth from 2020 was a bounce-back from the worst of the recession. However, rebounding property fundamentals and strong valuations, record sales…
Origination activity fell for the fourth consecutive month in December as higher rates and seasonal slowdown pushed rate locks down, according to Black Knight’s December 2021 Origination Market Monitor. Rate locks fell 18.3% from November to December and 35% year-over-year (YOY), fueled by a 22.5% drop in locks on purchase loans and a 17.1% drop in rate/term refinances. Rate/terms refis hit their lowest point in two years at the end of 2021. Locks on cash-out refis also dropped by 10% from November, though they are up 18% YOY thanks to incredible gains in home equity. The share of refinances rose to 48% due to the decline in purchase locks, though average refi credit scores were down 20 points YOY as…
The Fannie Mae Economic and Strategic Research (ESR) Group boosted its expectation for full-year 2021 economic growth to 5.5% in its December commentary, up 0.7% from November’s projection. The group cited “stronger-than-anticipated consumer spending and inventory investment data” as the reason for its revised projection. Total home sales are now expected to increase 7.1% in 2021 rather than 5.3%. Total mortgage originations are expected to be $4.5 trillion, up from $4.4 trillion. But it also revised its 2022 expectations, downgrading its 2022 growth forecast from 3.7% to 3.2%. Though recent data appears strong, the group noted it “likely reflects a pull-forward of activity from the first half of 2022 and is unlikely to be sustained.” Inflation is the primary reason…
Rate lock volume fell 4.7% month-over-month in November, Black Knight’s latest Originations Market Monitor report found. It is the third straight month of overall declines. The drop was driven by rate/term refinance originations, which fell 9.4% from October and almost 65% year-over-year (YOY), its lowest level since February 2020. Rate/term refinance dropped in eight out of eleven months in 2021. Locks on purchase and cash-out refinance fell 3.9% and 2.5% from October, respectively. However, they are still higher than 2020, with purchase locks up 13% YOY and cash-outs up 36% YOY. “While 30-year rates ended November relatively flat from where they were at the start of the month, there was some volatility in rate offerings throughout the month,” said Black…
