Stream of Mortgage Layoffs Continues

In addition to some of the high-profile rounds of mortgage layoffs previously reported, a stream of less prominent staff reductions are beginning to add up for the industry.

In August, Wells Fargo & Co. disclosed that it was eliminating 638 mortgage positions. While details about impacted locations were initially sparse, reports subsequently emerged providing a clearer picture.

In a filing with the Maryland Department of Labor, Licensing & Regulation as required by the Worker Adjustment and Retraining Notification Act, Wells revealed that 43 of the layoffs were in Frederick.

Source: Mortgage Daily

Free Credit Freeze From All 3 Bureaus

Following last year’s disclosure by Equifax that information was stolen on an estimated 143 million U.S. consumers, a provision for free credit freezes was included in legislation to roll back some of the more burdensome provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

While the Economic Growth, Regulatory Relief, and Consumer Protection Act — which was signed into law by President Donald Trump in May of this year — was viewed as good for financial services entities and bad for consumers, it required that the credit bureaus provide consumers with the ability to freeze their credit at no charge.

Source: Mortgage Daily

Mortgage Staffing, Servicing Grow at Alaska USA

Mortgage employees on Alaska USA Federal Credit Union’s payroll increased from the prior quarter and a year prior, as did residential loan servicing.

At the middle of 2018, the financial institution serviced 27,385 single-family loans with an aggregate unpaid principal balance of $5.272 billion.

Anchorage, Alaska-based Alaska USA revealed the details as part of the Mortgage Daily Second Quarter 2018 Mortgage Origination Survey.

Source: Mortgage Daily

2018 Mortgage Origination Outlook Cut Due to Refis

An improved outlook for home purchase financing this year was was wiped out by a big drop in expected refinancings. But next year’s forecast was cut thanks to lowered purchase-money expectations.

When this month concludes, an estimated $445 billion in residential loans are expected to have been closed during the third quarter.

The total, which includes both refinances and loans to finance a home purchase, is expected to tumble to $375 billion during final three months of this year.

Source: Mortgage Daily

Best Mortgage Jobs

Among the hundred best jobs in the nation are several that are found at home lenders — including positions in compliance and technlogy. Also making the list were loan originators.

At the top of the ranking among all industries was software developer, according to U.S. News & World Report LP’s The 100 Best Jobs in America.

Software developers have a median salary of $100,800. There are a projected 253,400 positions expected to be filled in the sector over the next decade, and the unemployment rate is 1.6 percent.

Source: Mortgage Daily

Refi Declines Wipe Out Purchase Gains

Even though purchase-money production is expected to increase by nearly $50 billion between this year and next year, refinances are expected to decline by more than $60 billion.

When the current quarter ends, a total of $443 billion in loans that are secured by one-to-four family properties are forecasted to have been closed.

Mortgage originations are expected to sink to $370 billion in the fourth quarter then deescalate further, to $328 billion, during the first-three months of next year.

Source: Mortgage Daily

Mortgage Rates Increase, Further Escalation Ahead

On a month-over-month basis, mortgage rates were slightly worse. But the deterioration deepened on a week-over-week basis. Further increases are likely.

Ellie Mae Inc. reported in its Origination Insight Report | August 2018 that 30-year note rates on home loans closed last month averaged 4.92 percent.

The average crept up from 4.91 percent the preceding month. A far more significant ascension was recorded versus a year prior, when the average was 4.27 percent.

Source: Mortgage Daily

FHA Delinquency Tumbles, Endorsements Edge Up

There was a monthly up tick reported in new business at the Federal Housing Administration, though a dip will likely follow. Single-family delinquency tumbled 48 basis points.

FHA insurance was in force on 8,620,469 residential loans for $1.3333 trillion as of July 31, according to an analysis of data reported by the Department of Housing and Urban Development.

Included in the total outstanding were 8,031,487 single-family loans for $1.1874 trillion, 554,395 home-equity conversion mortgages for $0.1449 trillion, and 34,587 Title I loans for $0.0010 trillion.

Source: Mortgage Daily

SF Drives Up Completed Constr, MF Leads Starts Up

Multifamily led a surge in new construction last month, while single-family activity drove up completed construction. But activity is likely to slow based on new permits.

Permit-issuing places authorized the construction of 114,800 new privately owned housing units during August. That brought year-to-date permits to 900,100.

The new construction data was based on a report jointly issued on Wednesday by the Census Bureau and the Department of Housing and Urban Development.

Source: Mortgage Daily

Refinance Share of Mortgage Originations Widens

A bigger share of borrowers who closed on their home loans last month were refinancing an existing mortgage than the preceding month. Closing rates climbed to a 12-month high.

Two-thirds of all single-family loans that were closed during August were conventional mortgages. Conventional share has widened from the same month last year, when it was 64 percent.

On the other side of the year-over-year gain were loans insured by the Federal Housing Administration, with the share retreating to a fifth from 22 percent in August 2017.

Source: Mortgage Daily