Tag Archives: Refinance

Wells Fargo, the nation's biggest mortgage lender, is reportedly getting set to cut more than 2,000 production jobs in response to the drop in refinance demand. According to a report from Bloomberg, people with knowledge of the matter said the bank is removing 2,300 jobs--about 20 percent of its 11,406 loan officers as of March 31.

Homeowners who refinance continue to overwhelmingly opt for fixed-rate mortgages, and by historical standards, fewer homeowners are using refinances as a means of putting more cash in their pockets, according to Freddie Mac's 2013 Second Quarter Refinance Report. More than 95 percent of homeowners who refinanced their mortgage loans in the second quarter of this year chose fixed-rate loans. At the same time, ""[t]he cash-out amount, while increasing, continues to remain low by historical standards,"" according to Frank Nothaft, VP and chief economist at Freddie Mac.

Four California men face jail time, probation, and restitution fees for alleged mortgage modification scams. The men defrauded hundreds of homeowners of more than $130,000, according to an announcement Tuesday from the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP). The four defendants sent promotional letters to homeowners offering to modify or refinance their home loans. They collected upfront fees for their services and did not deliver on their promises.

In a speech Tuesday, President Barack Obama will stress the need for a new housing finance system based on specific core principles that include putting private capital first, ending Fannie Mae and Freddie Mac's ""failed business model,"" and ensuring broad access to the 30-year fixed rate mortgage, according to a fact sheet from the White House. ""Fannie Mae and Freddie Mac should be wound down through a responsible transition, and the government role during normal times should be no bigger than necessary to achieve the principles laid out here,"" officials stated in the fact sheet released prior to the speaking event in Phoenix.

Undoubtedly, broadening eligibility for the Home Affordable Refinance Program (HARP) has allowed more borrowers to benefit from the program. However, HARP rules aren't the only obstacles stunting refinance volume. A report from the Federal Housing Finance Agency Office of Inspector General (FHFA OIG) found a lack of borrower education is also a critical barrier to the program. ""[M]any borrowers have not heard of the program, confuse the program with other government housing programs, or do not realize that they are eligible,"" the report stated.

The FOMC voted Wednesday to continue its policy of near-zero interest rates and its $85-billion-per-month bond-buying program. In a subtle change of language designed to assuage nervous stock investors, the FOMC statement said the committee ""reaffirmed its view that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the asset purchase program ends and the economic recovery strengthens.""

The number of borrowers who refinanced through the Home Affordable Refinance Program (HARP) fell 20 percent month-over-month in May, data from the Federal Housing Finance Agency (FHFA) revealed. The GSEs refinanced 84,648 borrowers through HARP in May, down from 106,910 in April. Since HARP's 2009 inception, the program has refinanced over 2.6 million loans.

If two tweaks were made to the Home Affordable Refinance Program (HARP), refinancing activity could increase substantially, according to a report from the Federal Reserve Bank of New York. One change would be to remove the cutoff date that limits eligibility to Fannie Mae and Freddie Mac loans that were obtained by June 1, 2009. The second change would be to allow borrowers to refinance under the program more than once.

In April alone, nearly 107,000 loans were refinanced through the Home Affordable Refinance Program (HARP), up from 99,000 in March, according to data FHFA. April's figure raises the total since the program's 2009 inception to 2.56 million. The program also continued to help a large share of underwater borrowers. From January to April, 44 percent of GSE borrowers who refinanced under the program had loan-to-value ratios greater than 105 percent.

With demand, prices, and credit conditions all on a path to recovery, Deloitte Banking & Securities research leader Val Srinivas examined the problems still facing originators and how they must adapt to overcome. The biggest challenge to the housing market in general right now is low supply. Also changing the landscape is imminent end of the refinance boom, which has been drawing to a close as mortgage rates start to pick up again.