By Donald Stimpert, manager of secondary market QC, Young & Associates
As a result of higher mortgage interest rates and inflation continuing to weigh on affordability, Fannie Mae revised downward their forecast for 2022 single-family mortgage market originations. Fannie Mae now expects 2022 single-family mortgage market originations of $2.3 trillion. This is a 49 percent decrease from 2021. Approximately 70 percent of activity for the full year of 2022 is expected to come from purchase originations.
Fannie Mae currently projects a further decline in single-family mortgage market originations in 2023, to $1.7 trillion. 77 percent of that activity comes from purchase originations. The organization expects that multifamily mortgage market originations for 2022 will be between $400 billion and $430 billion. This is down from the $475 billion estimated at the start of this year. This is due primarily to rising interest rates and a slowing in multifamily property sales.
How Young & Associates can help
As a result of the higher mortgage interest rates, more lenders are holding on to their loans and keeping them as in-house portfolio loans. Y&A currently works with several clients to conduct not only residential secondary market loans, but in-house portfolio loans as well. By reviewing in-house portfolio loans, Young & Associates will provide the same QC services as we do on the residential secondary market loans while providing financial institutions with the peace of mind that underwriting standards are maintained in accordance with policy directives.
Organizations with a commitment to quality control recognize that loan quality begins before an application is taken. It then continues throughout the entire mortgage origination process. Young & Associates has provided education, outsourcing, and a wide variety of consulting services to community financial institutions for over 44 years. We are committed to your bank’s future success and look forward to assisting you to ensure or enhance that success. Please click here to learn more, or contact me directly at 1.330.442.3459 or dstimpert@younginc.com.
