What We're Hearing

There's no way to put a positive spin on the new origination forecast unveiled by the Mortgage Bankers Association this morning. At $1.28 trillion, if the MBA's number becomes reality, it would be the industry's worst year since 2000 when just $1.067 trillion of mortgages were funded. The only rational positive spin that comes to mind is this: yes, loan volumes are expected to fall, but keep in mind that homes today are worth quite a bit less than the past few years -- and with falling home prices comes a lower dollar volume of originations. In other words, perhaps we should focus on the number of loans originated, not the dollar volume. If mortgage rates stay steady, or even rise a bit, servicing rights will increase in value. For that story see this week's front page story of National Mortgage News...