US banks seeing rise in home loan refinancing
US mortgage interest rates are near historic lows and have fueled a refinancing boom that has US lenders struggling to handle the action.
The lending logjam extends to the Nation’s biggest banks, which fired thousands of mortgage workers after interest rates rose in November through February, chilling refinancing demand.
Image via Wikipedia
Today, the time needed to close a loan has as much as doubled to 60 days, and lenders are holding some mortgage rates higher than they could be to slow the torrent of customers, data show.
Refinancing applications are up 83% from this year’s low in February, according to an index compiled by the Mortgage Bankers Association, a Washington-based trade group.
After topping 5% in February, the average rate on 30-yr fixed loans fell 2 weeks ago to 4.15%, the lowest in surveys dating back to Y 1971 by Freddie Mac, the 2nd-largest US mortgage-finance company.
Compounding the delays are stricter underwriting and disclosure requirements implemented in the past few years, which leave no room for shortcuts, said Stew Larsen, head of the mortgage unit at San Francisco-based Bank of the West. Wells Fargo & Co. (NYSE:WFC), the largest US home lender, is no longer hiring temporary staff and outsourcing firms when applications rise because of separate rule changes, according to Franklin Codel, head of national consumer lending at its mortgage unit.
Lenders’ capacity to handle loan applications could be an obstacle for the Obama administration, which is weighing options for spurring a housing recovery, including steps to promote refinancing for underwater borrowers, or those who owe more than their property is worth.
Almost 27% of single-family homeowners with mortgages have negative equity, according to Zillow Inc., a Seattle-based real estate data provider.
Read more at http://www.livetradingnews.com/us-banks-seeing-rise-in-home-loan-refinancing-52763.htm
Related articles
- Home Loan Modification Programs - What You Can Get From It and How to Get Started! (april.gritali.com)
- Mortgage rate drop produces refinancing wave (sfgate.com)
- Refinance your Kentucky Mortgage Loan (louisvillekymortgage.net)
Tags: Bank of the West, Freddie Mac, home loan refinancing, Loan, loan refinancing, Mortgage Bankers Association, Mortgage loan, mortgage modification, mortgage refinancing, Obama administration, Refinancing, refinancing a car loan, rise of the planet of the apes, rise of the planet of the apes review, United States, us mortgage repayment
Your content is nothing short of amazing. It’s been a long time since I read an article so well-written and easy to understand. Keep up the great work. Thank you.
I have read several articles on this issue but you have brought up some interesting points. Just when I thought there was nothing new to investigate, you’ve proven me wrong.
This is a great work with a lot of thought and effort poured into it. I can tell by how you use your words you are intelligent and you care about the content you write.
Excellent work! I really enjoyed your points of view and agree on most of them. I will come back to check for more great content.
Your article has proven useful to me. It’s very informative and you are obviously very knowledgeable in this area. You have opened my eyes to varying views on this topic with interesting and solid content.
Thank you for writing such a great article. Two thumbs up for this well-written and researched material. It’s loaded with engaging material. You are truly a gifted writer. Thank you.
The quality of your article surpasses my expectations. You have a keen eye for details and your content is well-expressed. I’m impressed with your writing.
A writer can either write at readers or to them. You chose to write to readers and that’s a good thing. I feel enlightened after reading your article due to how you express your knowledge.
This is simply the best article on this subject I’ve seen so far. I am glad got the opportunity to read it. You’ve done well.
Thank you for sharing your well-researched information. I appreciate the work you did and how you found a unique and interesting way to share your vast knowledge in this area.
This article weighs in as a heavy weight hitter in my opinion. The content is informative, but it’s also clear. This is right on point as far as I’m concerned.