Why Banks Should QC In-Portfolio Loans

December 5, 2022

By: Donald Stimpert, Consultant and Manager of Secondary Market QC Services

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, a 49% decrease from 2021, with approximately 70% of activity for the full year of 2022 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, with 77% of that activity coming from purchase originations. Fannie Mae expects that multifamily mortgage market originations for 2022 will be between $400 billion and $430 billion, down from the $475 billion estimated at the start of this year, due primarily to rising interest rates and a slowing in multifamily property sales.

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. Young & Associates is currently working 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 and 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 [email protected].

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