Freddie Mac economists are expecting a surge in refinancings during the fourth quarter and recently increased their origination forecast for the period by nearly 70%.
In a new outlook piece, the GSE boosted its production estimate to $371 billion for 4Q, compared to a prior estimate in September of $221 billion.
In the third quarter, mortgage bankers funded almost $300 billion of loans.
Freddie Mac chief economist Frank Nothaft sees conventional lending reaching $260 billion in 4Q, compared to $154 billion in the September forecast.
The decline in mortgage rates, especially for FRMs, should trigger an increase in refinancings, Nothaft said. “We added more than $100 billion to the 2011 fourth quarter for that reason.”
Fourth quarter originations of Federal Housing Administration and Department of Veterans Affairs guaranteed loans should total $111 billion, according to the chief economist’s forecast – an increase of 65% from the September estimate.
Daily Briefing | Tuesday, October 18, 2011
AGs Support CFPB Nominee Cordray
The White House has recruited 37 state attorneys general to urge Senate Republicans to stop blocking the confirmation of the first Consumer Financial Protection Bureau director.
Buyback Claims on the Rise Again at Bank of America
Bank of America said it is receiving more buyback requests for older vintages of loans from Fannie Mae and plans to contest some of these claims regarding breaches of representations and warranties.
Vendor Launches PLS Securitization Advisory Unit
Clayton Holdings, Shelton, Conn., Tuesday announced the formation of a new securitization group to aid the industry in what it hopes will be a revival of the private label MBS market.
B of A Marks Down MSRs by 36%, But MB Unit Earns Money
Bank of America marked down the asset value of its residential servicing portfolio by a stunning 36% in the third quarter, but managed to post mortgage banking income of $1.8 billion during the period.
CFPB: Old Methods, New Approach to Guide Exams
Examiners from the Consumer Financial Protection Bureau may look the same, but they won’t necessarily see the same. The bureau is employing many of the same examiners — and similar methods — that the banking regulators have used for years to conduct exams, according to the CFPB’s supervision and examination manual released last week.
IMA Selling Small Bulk MSR Portfolio
Interactive Mortgage Advisors, Denver, is auctioning off a $57 million portfolio of bulk servicing rights for an undisclosed seller.
SG Now Providing Direct Lending, Brokerage Services
SG Premier Lending Group Inc., Santa Barbara, Calif., has ended its marketing relationship with RPM Mortgage and is now providing direct lending and mortgage brokerage services on both residential and commercial properties in California.
Exec: Recent DUS REMIC Helps Broaden Investor Base
Fannie Mae’s recently priced $577 million multifamily DUS REMIC highlights moves the agency is making to court an agency CMBS investor base that appears to be broadening as activity has subsided somewhat in the CMBS conduit market.
Advisory Firm Hires Freddie Mac Executive
The Collingwood Group, an advisory firm based in Washington, has added yet another industry veteran to its staff Ray Romano, a former senior vice president of credit risk for Freddie Mac.
Baltimore Resale Sector Is Flat in September
The existing home market in the Baltimore, Md., area was basically flat in September, with both sales and prices rising by the thinnest of margins.