Mortgage Daily Logo

Q1 Outlook Raised $100 Billion

Mortgage News

Mortgage Daily

                                                 March 15, 2011

A big increase in conventional mortgage business has the first-quarter origination outlook more than $100 billion higher.

Residential originations by U.S. lenders will be $355 billion in the first three months of this year, Freddie Mac predicted in its March 2011 Economic and Housing Market Outlook.

Just last month, Freddie’s forecast called for only $245 billion in first-quarter production.

Home-loan originations will decline to $296 billion in the second quarter and dip below $200 billion in the final period of this year.

Conventional originations were projected to come in this quarter at $270 billion, higher than last month’s prediction of $175 billion. The projection for fundings that are either insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs was raised to $85 billion from $70 billion.

Including both conventional and government business, 2011 originations are forecasted to reach $1.1 trillion. That’s a $50 billion improvement from last month’s forecast but a big drop from the estimated $1.550 trillion in 2010 production.

Freddie cut its 2012 funding forecast from $1.150 trillion to $1.050 trillion.

The outlook has refinance share falling to just over two-thirds this quarter from 71 percent in the prior period. By the end of this year, the share will be hovering just above a third — though that could change dramatically given the recent declines in mortgage rates.

The share of business that is adjustable-rate will rise to 5 percent from the fourth quarter’s 4 percent then steadily increase to 11 percent by the end of next year.

Related Posts

Federal Housing Administration$1,224.5 billionDec. 31

Third-Quarter 2012 Mortgage Litigation Index

Lawsuits involving excessive fees, servicing fees and loan fees beyond state maximums. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Fannie Mae and Freddie Mac Orangeburg County, Richland County, South...

Federal Housing Administration$1,224.5 billionDec. 31

Net Branch Lawsuits

Litigation involving net branch operations. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story PHH Mortgage Corp. Mathews Supreme Court of Virginia na Court held that the term "branch office" includes not only...

Federal Housing Administration$1,224.5 billionDec. 31

Whistleblower Lawsuits

Litigation related to loan servicing, including escrow issues, transfer of servicing and servicing borrowers in bankruptcy and foreclosure.   Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Bank of...

Federal Housing Administration$1,224.5 billionDec. 31

Mortgage Servicing Lawsuits

Litigation related to loan servicing, including escrow issues, transfer of servicing and servicing borrowers in bankruptcy and foreclosure. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story BAC Home Loan...

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming paperwork has been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and furniture need to...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand-new mortgage loan can be a difficult task, especially for first-time homeowners.   After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first...

Newsletter

Don’t worry, we don’t spam