Originations

The central bank’s new tone has many in the industry planning for potential volatility in 2022.

However, the unusual profitability residential finance firms have previously enjoyed, and a strong housing market, could help to sustain their bottom lines.

Error findings related to income and employment reached a high point since Aces Quality Management started its report in 2016.

Activity is down 20% from one year ago, driven by a 65% falloff in rate and term refinancings, Black Knight said.

But rising rates and tightening affordability are slowing appreciation rates, Black Knight found in its latest Mortgage Monitor report.

Besides making the deduction permanent, the bill doubles the income threshold for those eligible to claim it.

Though unlikely to derail a hot housing market, another surge in COVID-19 cases could cloud the outlook for economic growth, analysts said.

But in November, home buyer demand reached its highest level since RedFin began compiling the data in 2017.

However, capacity issues, the suspension of the government-sponsored enterprise purchase caps and higher conforming limits all could affect activity, KBRA said.

The Federal Housing Administration’s changes seek to bring guidelines for specialized Title I programs in line with current borrower and market needs.