FHA Streamline Refi Business Gains Momentum From Premium Cut, But Market May Face Capacity Limits
June 21, 2012
Surging streamline refinancing activity is helping boost FHA lending but the benefits of increased originations may be restricted to financial institutions that have the ability to retain servicing and are not dependent on selling FHA loans to larger banks, according to some lenders. Applications for government-insured refinance loans more than doubled last week as reduced mortgage insurance premiums for the FHA streamline refinances went into effect, according to the Mortgage Bankers Associations latest survey of mortgage applications. The MBAs government refinance index jumped from 4010 last week to...