Seven Market Developments That Have Mortgage Heavyweights Pivoting

Industry changes can often be seen first among public companies who were in the mortgage industry. Here are some recent shifts within the market that industry leaders are reacting to.

1. Labor Shortages Vex Homebuilders

The construction labor shortage continues to hinder homebuilders and slow the growth of the residential new home market.

2. Not All Refis Are Declining

Although loan refinancing has fallen in general, cash-out refinancing now makes up approximately 50% of all refinance loans.

3. The GSEs are Trying to Get REIT Eligibility for Risk-Sharing

Government-Sponsored Enterprises are attempting to get eligibility as Real Estate Investment Trusts to help spread risk.

4. Front-End GSE Risk-Sharing is Progressing, But Slowly

There is slow growth in the Government-Sponsored Enterprise risk sharing pilot programs.

5. Growing Concerns About Regional Home Price Risk

Home prices at the national level have been rising but there are some areas where that is happening disproportionately and other areas of distress.

6. PMIERS 2.0 is a Capital Consideration for PMI Carriers

Government-Sponsored Enterprises are anticipated to revise the eligibility requirements for private mortgage insurance, and until that happens many do not want to take any strong action.

7. Pricing Gets More Competitive in Lender-Paid MI

Although pricing of PMI is stable, competition is present due to more lender-paid mortgage insurance.

By Irvin White III

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