Hello, LOs!
Remember when people said we could see super-low mortgage rates for a long time? Like, many years? Well, rates just crossed the 5% threshold. And there's good reason to think they might climb into the 6s or higher given all the rate hikes still to come.
LOs, what were the rates on loans you locked today? And how high do you think they'll go this year? Share your thoughts by emailing me at james@hwmedia.com.
*Mortgage software provider and analytics giant Black Knight might be on the block. Several private equity firms are weighing takeover bids, Bloomberg reported on Tuesday. The company has a market capitalization of about $10.3 billion.
LOs, I'm curious – do you enjoy using Black Knight's Empower system? Is there another loan origination software you prefer?
*I also want to share some responses to yesterday's query about turn times. The chorus of brokers and LOs said that UWM remains the fastest in the industry.
"With Pro-Elite status at UWM, I get same day Initial UW, typically have no conditions or only a couple minor ones," wrote one LO in Michigan. "Conditions loaded early in the day are cleared the same day and often [clear to close] the same day the last condition is cleared. If you turn in a clean file with all docs, including fully executed PA and [homeowners insurance], you can get your prelim [closing documents] the very next business day. Combine that with an appraisal waiver and you are not only [clear to close] on a purchase in 3 days, but able to actually sign 7 days from application."
Several LOs said that Rocket's 15-day commitment on conventional loans wasn't that big of a deal. The industry has built up an incredible capacity in recent years, so they should be able to do this, LOs told me. Plenty of lenders can execute a simple conventional loan in 15 days, they said.
*Now, about that capacity. We broke the news earlier this week that Movement Mortgage laid off about 170 workers. They're a purchase-focused lender with a distributed retail model. What does that mean for the rest of the industry, especially now that we might be looking at rates in the 6s or higher?
Other stuff to know today:
*Angel Oak Mortgage Solutions pulled back on its new rate lock policy for mortgage brokers after just one day. The firm on March 31 announced a lock policy change in which it would break locks older than 30 days and relock them at current (read: higher) rates, which, yep, caused upset among brokers and borrowers. Angel Oak retracted the changes the following day, saying it was in the "process of making the appropriate system updates to reflect the original information of borrower's loans." New loans are now subject to a 30-day lock. This rate environment sure is tough on unhedged originators.
*Refi applications are down 62% year-over-year. I'm curious – when was the last time you did a rate-term refi? How many equity-rich homeowners are even willing to do a cash-out now with rates being what they are?
*Fannie Mae is now allowing an alternative to title insurance to be used when closing on a mortgage. That alternative is called an attorney opinion letter. Per Fannie's latest selling guide update, the letter must be addressed to the lender; be commonly accepted in the area where the subject property is located; provide gap coverage for the duration between the loan closing and recording of the mortgage; list all other liens and state they are subordinate; and state that the title condition of the property is acceptable and the mortgage constitutes a lien of the required priority on a fee simple estate in the property.
James Kleimann
Managing Editor, HousingWire
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