Monthly Archives: August 2016
The loan origination report is derived from publicly recorded mortgages and deeds of trust collected by ATTOM Data Solutions in more than 950 counties accounting for more than 80% of the U.S. population.
“The nominal increase in overall originations compared to a year ago masks divergent refinance and purchase loan origination trends during the quarter,” said Daren Blomquist, ATTOM Data Solutions senior vice president. “Refinance originations increased 16% compared to a year ago while purchase originations were down 11% and Home Equity Lines of Credit originations were down 6%.”
“Uncertainty surrounding the outcome of the presidential election may have kept some would-be homebuyers on the sidelines while the prospect of rising interest rates following the election may have prompted many homeowners to refinance to lock in low interest rates,” Blomquist said.
In the third quarter, 876,633 refinances loans were originated. That is an increase of 7% from the second quarter, and 16% from last year. Refinance originations made up 45.7% of total originations during the third quarter, up from 42.1% last quarter and 39.5% last year.
Many homeowners are rushing to refinance their homes before interest rates increase. While rates are currently still at historical lows, the 30-year mortgage rate recently hit its highest point since July 2015.
On the other hand, purchase originations totaled 743,880 during the third quarter. This is down 8% from last quarter and 11% from last year. This is the first decrease after nine months of consecutive annual increases in purchase originations. Purchase originations totaled 38.8% of all originations, down from 41.4% last quarter and 43.8% last year.
In fact, according to a new report from Kroll Bond Rating Agency, 2016 will likely be the peak year for mortgage originations for “years to come,” as a fall in origination volume will occur in 2017 and beyond.
Earlier this year, Fidelity National Financial, the nation’s largest title insurance company, acquired Commissions, Inc., a provider of web-based real estate marketing and CRM software for residential real estate agents and agent teams, pledging to grow the company’s business.
When the companies announced the deal, Fidelity National Financial Chairman William Foley said that CINC’s “strong revenue and customer growth has been largely organic, with minimal sales force efforts needed,” adding that the title insurance giant planned to “leverage FNF’s title sales force to proactively cross-sell the CINC product suite to our leading customers.”
Now, CINC’s product suite is about to get a little larger, as the company plans to acquire TigerLead, a real estate agent lead generator, from Move, Inc.
Move acquired TigerLead in 2012, before bringing the company with it when News Corp bought Move in 2014.
Move, which operates realtor.com for the National Association of Realtors, said that it plans to “focus its attention” on realtor.com and its other properties moving forward.
“Move will focus its attention and resources on its realtor.com products, and the evolution of our professional software businesses, including: Top Producer, Market Snapshot, FiveStreet, ListHub and Reesio,” Move spokesperson Janice McDill said in a statement to HousingWire.
McDill said that Move determined that Commissions Inc., which she called “a leader in its space,” would best serve TigerLead’s customer base.
“Commissions, Inc. recognizes that the TigerLead customer base is amongst the best agents/teams in the country and will continue to invest in their future success,” McDill said. “The transition of ownership of TigerLead to CINC is planned to be seamless and imperceptible to TigerLead customers.”
Financial terms of the deal were not disclosed.
HousingWire contacted Fidelity National and TigerLead for comment, but as of publication, neither company has responded.
This article will be updated if either company responds.