Originations

More than half of pandemic gains have been erased, but how the mix of stronger than expected overall employment and other developments will affect rates remains uncertain.

The increase in federally backed loan activity helped drive overall volumes upward for the first time since early February, even as interest rates jumped again, according to the Mortgage Bankers Association.

The CFPB is requesting input on adding specifications that are intended to alleviate TRID compliance concerns on construction-to-permanent single-close loans and those requiring separate construction and home loan closings.

Purchase and refinance mortgages continued their slide as total origination volume was $475.5 billion during the final months of 2022, down 56% from the end of 2021.

A week after it dropped to a 28-year low, purchase activity decreased again by over 5%, according to the Mortgage Bankers Association.

Financial terms were undisclosed for the most recent acquisition.

Buyer affordability has decreased by almost 22% in the past year, according to the Mortgage Bankers Association.

Persistent inflation concerns drove the 30-year average up 41 basis points this month.

Volumes fell 18% compared to the previous week, while refinance activity also pulled back.

Weaker economic conditions, rising interest rates and expected changes in investment returns drove the reduced expectations, the Mortgage Bankers Association said.

But with rates turning back up this past week, activity could fall in February, Black Knight Optimal Blue said.

While reverse mortgages allow older homeowners the opportunity to draw on home equity with minimal risk, problems arising from flaws in program structure are causing headaches for borrowers and issuers alike, according to recent reports.

The company's mortgage operations posted a $24 million pretax profit thanks to servicing, while loan production saw a loss.

Since breaking above 7% in November, the 30-year fixed is now down nearly a full percentage point, Freddie Mac said.

This move comes at a time when the largest HECM producer sold its operations to a rival and another filed for bankruptcy.

But several recent news developments are creating the perception that the risk of a recession is on the wane and that could end the downward pressure on rates.

The move, which comes with an unspecified number of layoffs, is expected to cost the company $3.8 million to $4.6 million in pretax charges in the second quarter.

Declining mortgage rates and home prices drove more positive views compared to the prior month, but December's overall outlook remained negative, Fannie Mae said.

The sector is not immune to the same economic instability that affects the single-family residential market, the Mortgage Bankers Association said.

Higher interest rates helped drive down refinances by 87% and purchases by 42% compared to last year.