TheMReport — News and strategies for the evolving mortgage marketplace.
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Department se r v ic i ng or ig i nat ion ORIGINATION LendingTree Releases Top CustomerRated Lenders HomePlus Mortgage ranks highest in LendingTree's network. S e c on da r y M a r k e t a na ly t ic s L What Will Rate Hikes Mean for Origination Volume? FBR takes another look at its forecast in the wake of rising interest rates. W hile FBR Capital Markets maintains its predictions for origination volume—$1.6 trillion in fiscal year 2013 and $1.4 trillion in fiscal year 2014— are still "attainable," the volatility of the current environment has the firm taking another look at the possibilities ahead. Given the expectation that purchase volumes will return to normalized levels and that the government will continue to support the housing market recovery, FBR believes its forecast won't be far off the mark. That said, the company admits its estimates 38 | The M Report "depend on a stable rate environment or a more robust level of economic activity than we are experiencing today." Should rates return to last year's trend of steady declines, FBR predicts purchase and refinance originations will outpace its estimates—the most likely outcome, "given the tepid economic recovery and probable government intervention if purchase activity remains lackluster," said analyst Paul J. Miller Jr., CFA. On the other hand, in an environment in which rates continue rising (absent meaningful economic recovery), affordability concerns would drive down activity. If, however, rates rise as a sign of economic growth, FBR anticipates purchase originations will rise enough to offset most of the ongoing decline in refinances. Additionally, the firm's expectation for increased activity depends on lenders' willingness to open their purse strings and improve accessibility for borrowers with less-than-pristine credit. "To that end, we believe that regulators are crafting mortgage rules in order to support banks going down the credit spectrum through newly proposed QM [qualified mortgage] standards, reps and warranties rules, disparate impact, and recent FHA [Federal Housing Administration] guidelines surrounding post-bankruptcy lending," Miller said. endingTree released recently the top 10 customer-rated lenders in its network, revealing Californiabased HomePlus Mortgage as the No. 1 lender for the second quarter. The top 10 list was created based on a weighted average of review rating and volume of customer reviews. Lenders were rated on mortgage rates, fees and closing costs, responsiveness, customer service, and overall experience. The company's network includes more than 250 lenders, out of which HomePlus Mortgage took the top spot. Following HomePlus on the list were Pacific Beneficial Mortgage Company; Affinity Mortgage, LLC; Mortgage Loans for Texas; and Americash in the top five. Top 10 LendingTree Network Lenders in Q2 1. HomePlus Mortgage 2. Pacific Beneficial Mortgage Company 3. Affinity Mortgage, LLC 4.Mortgage Loans for Texas 5. Americash 6. BNC National Bank 7. Mid America Mortgage, Inc. 8. Integrated Financial Group, Inc. 9. Mortgage Lenders of America 10.Southwest Direct Mortgage