Mortgage Originations Increased In The 2nd Quarter

It was reported this week that Mortgage Originations Increased In The 2nd Quarter.  That comes as both a surprise and not as a surprise to me.

I was not surprised by the news because I have been busy all year, and the number of loans that I have originated so far this year are at about 85% of what I did all of last year.  So I am not surprised that Mortgage Originations Increased In The 2nd Quarter.  I don't think that what I have experience in increased originations is the exception, but rather the norm.

However, I am surprised that the increase in the 2nd Quarter was as much as 5.2%, since most of the increase is being attributed to refinances.  Rates have been very low and many are trying to take advantage of that, but cannot because of declining property values.  As a result many of those that want to refinance are under water on their properties so they are unable to refinance.  The major up turn in refinances have been because of the revised FHA Streamline Refinance Guidelines which do not require an appraisal, therefore it does not matter if the homeowner is under water.  But this change did not accrue until almost half way through the third month of the 2nd Quarter.

I would expect the increase in origination to have take a major up turn since the change in the FHA Streamline Refinance Guidelines to the present.  We have been absolutely flat out with the FHA Streamline Refinances for loans that closed and received Case Number Endorcement prior to June 1, 2009.  These refinance are a no brainer, with everyone that I have done saving Borrowers between $200 to $400+ per month.

If the Mortgage Originations Increased In The 2nd Quarter, than the Mortgage Originations in the 3nd Quarter should be significantly higher in my opinion.  But Mortgage Originations have not only been good this year for me for refinances, my purchase loans are up as well.  Purchase business is what I look for, it is purchase business that keeps things going, not refinances.  It will be purchase loans that will be a true barometer of whether originations are truly up not refi's.

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Who To Call For Your Mortgage Needs In Connecticut:

George Souto NMLS# 65149 is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308  gsouto@mccuemortgage.com, or visit my McCue Mortgage Homepage.