Loan officer commission dropped 17% year-over-year (YOY) in Q3 2021, according to SimpleNexus’ Q3 mortgage loan compensation report. The report cites declining loan volume as the main factor in commission declines, while a roughly 15% rise in loan officer staffing contributed to a ⅓ drop in individual processor incentive compensation. Per-loan commission rates have started falling as well, dropping 2.44% YOY from 102.88 to 100.37 basis points. Declining refinance activity had the biggest impact. Monthly refi commission dropped 37%. Refis have been falling steadily as rates tick up, resulting in the slowest weekly pace of refinancing since January 2020. Interest rates reached 3.14% last week. “We continue to expect weakening refinance activity as rates move higher and borrowers see less…
Mortgage loan application volume rose by just 0.3% last week, the Mortgage Bankers Association’s (MBA) weekly survey reports. The Market Composite Index, which measures application volume, rose 0.3% on an adjusted basis. The Refinance Index fell 2% and was 26% lower than a year ago. It’s the Refinance Index’s lowest level since January 2020. The seasonally adjusted Purchase Index rose 4%, while the unadjusted Purchase Index rose 3% compared to the week before, down 9% from the previous year. “Mortgage rates increased again last week, as the 30-year fixed rate reached 3.30% and the 15-year fixed rate rose to 2.59%- the highest for both in eight months. The increase in rates triggered the fifth straight decrease in refinance activity to…
A new poll from Fox News shows 9 in 10 Americans are worried about inflation, and they aren’t alone. A growing consensus among housing and banking analysts is that, while the Federal Reserve gets most of the attention, the real force impacting mortgage rates in the coming months is inflation. And that’s a factor much harder for policymakers to impact than the Fed. “If you haven’t yet refinanced, do so now,” says Greg McBride, chief financial analyst for Bankrate. “The likelihood is that we see higher rates, not lower rates in the months ahead.” While an entire industry has grown up around ‘Fed watching’ — tracking every hint dropped by Federal Reserve Chairman Jerome Powell and his counterparts — inflation…
The Federal Housing Finance Agency announced it is dropping the COVID-era Adverse Market Refinance Fee beginning August 1. But what does that mean for borrowers who were already in the process of refinancing loans? That depends on the lender. Rocket Mortgage notified brokers last week that it is dropping the fee immediately for loans in progress. Others haven’t publicly committed to removing the fee – or did not respond to Mortgage Note requests for comment. “As you know, we already repriced earlier today, instantly passing the savings along to your borrowers on all new registrations and your entire floating pipeline,” Rocket said in an email to brokers. “We’re also in the process of applying the 50 bps credit to your…
Good morning! Today is Monday, July 19. Concerns about the Delta variant of the Coronavirus are putting downward pressure on stock and commodity futures. At least one U.S. gymnast has tested positive for COVID-19. Europe is reeling from a series of landslides. The Biden administration is blaming China for a hack of Microsoft Exchange email server software that compromised tens of thousands of computers around the world earlier this year. And in mortgage and housing news… Mortgage refinances spike: Low interest rates drove a 20% spike in mortgage refinance rates last week, with a declining 30-year fixed rate spurring heavy refi activity. Supply prices down: Wood futures are declining from their dizzying highs earlier this year, signalling potential relief for homebuilders, though…
The Federal Housing Finance Agency announced a new refinance option that will provide low-income borrowers with reduced interest rates and lower monthly payments. The new option is available to borrowers with Freddie Mac and Fannie Mae backed loans. It includes: A requirement that the lender provides a savings of at least $50 in the borrower’s monthly mortgage payment, and at least a 50-basis point reduction in the borrower’s interest rate.A maximum $500 credit from the lender for an appraisal if the borrower is not eligible for an appraisal waiver (the Enterprises will provide the lender a credit of $500 upon the loan’s sale to an Enterprise).A waiver of the 50 basis point up-front adverse market refinance fee for borrowers with loan balances…
Mortgage rates are sitting at record lows and US homeowners are taking advantage by refinancing their mortgages. For those who haven’t refinanced, Zillow is offering a look at how much they could save on the typical house in markets across the country. “Choosing whether to refinance your mortgage is ultimately a personal choice, but recent moves in mortgage rates have probably made that decision a whole lot easier for those who qualify,” Zillow economist Matthew Speakman said. “Mortgage rate declines have allowed many to lower their monthly mortgage payment or tap into the equity they’ve built in their home by refinancing their loan – offering some financial stability to many in a time of great economic uncertainty. With rates poised to…
Faced with a barrage of criticism, the Federal Housing Finance Agency announced Tuesday that it is delaying the implementation date of the “adverse market refinance fee” for three months. The fee – which drew criticism from members of Congress, industry groups and housing advocates – was scheduled to take effect next week. It is now going to take effect Dec. 1, FHFA announced FHFA also said the fee will not apply to refinances on loans below $125,000. “We welcome today’s announcement from the FHFA amending the recently announced Adverse Market Refinance Fee from Fannie Mae and Freddie Mac,” Mortgage Bankers Association President and CEO Bob Broeksmit said. “Extending the effective date will permit lenders to close refinance loans that are…
