MBA Lowers Its 2010 & 2011 Origination Forecast Slightly

Even though residential lenders are enjoying a decent year when it comes to originations, the next two are looking dicey, according to a new economic forecast by the Mortgage Bankers Association. MBA chief economist Jay Brinkmann estimates that fundings will fall to $1.556 trillion next year and just $1.482 trillion the year after before rebounding slightly. Up until recently, Mr. Brinkmann's forecast for the next two years stood at $1.62 trillion and $1.608 trillion, respectively. According to figures compiled by National Mortgage News and the Quarterly Data Report, the industry is on track to fund roughly $2.1 trillion this year, a handsome 32% gain from 2008 when the mortgage and credit markets swooned. In a recent interview with NMN Mr. Brinkmann cited uncertainty over the first time home buyer tax credit and the Federal Reserve's impending withdrawal from the MBS market as chief concerns.