Refinance

Only 18% of refinance borrowers returned to the same lender in the second quarter, the second lowest rate since 2005.

Even though second-quarter originations were nearly double the same period in 2019, most were refinancings, which generate less revenue for title companies.

The guidelines are somewhat similar to those the Federal Housing Finance Agency established for the government-sponsored enterprise market in response to the high number of loans impacted by coronavirus-related hardships.

From an increased interest in outdoor space to a need for a dedicated home office, the pandemic has created new drivers for refinancing, moving and other housing decisions, TD Bank found.

That, along with continued high refinance volume over the next three months, keeps originators' profit forecasts elevated, Fannie Mae said.

Mortgage applications increased 2.9% from one week earlier, rising for the first time in nearly a month with home-buying demand remaining unusually strong as summer ends, according to the Mortgage Bankers Association.

Nearly half of the second-quarter volume came from its existing customers.

Mr. Cooper plans to hire an additional 2,000 employees by the end of this year as record low interest rates spur home purchases and mortgage refinancings.

But federal elections and the pandemic make projections on the sustainability of industry profitability especially tricky.

Millennials locked in the lowest mortgage rates on record and kept the summer housing market hot, according to Ellie Mae.

Mortgage applications fell for the third consecutive week, likely because those borrowers motivated to refinance have already done so, according to the Mortgage Bankers Association.

The refinance boom kept mortgage loan application defect risk flat, with record-low levels in July, but fraud risk for purchases climbed again, according to First American Financial.

The new reality for investors and originators accounts for forbearances and ability-to-repay.

Mortgage application volume decreased 6.5%, falling for the second consecutive week with refinance activity at its lowest since early July, according to the Mortgage Bankers Association.

The mortgage giants were criticized earlier this month for a plan to charge an "adverse market fee" to protect against losses resulting from the pandemic.

Lenders initially won't be able to pass on the cost of the Federal Housing Finance Agency's "adverse market fee" to borrowers whose rates on GSE-backed mortgages and refinances are already locked in.

The higher charge on mortgages refinanced through Fannie Mae and Freddie Mac is supposed to cushion against a crisis but could contribute to one as the fees are passed on to struggling consumers.

With mortgage rates tumbling near 3% in the second quarter, refinance originations spiked 400% in some housing markets, pushing overall volume to its highest point since 2009, according to Attom Data Solutions.

Mortgage applications decreased 3.3% from one week earlier, but purchase activity momentum persisted with home sales remaining a bright spot in the economic recovery, according to the Mortgage Bankers Association.

Dana Wade, a former OMB official, says a strong capital footing will help the Federal Housing Administration weather an uptick in delinquencies and ensure the mortgage market is viable once the economy recovers.