Lower interest rates bring refi opportunities; borrowers experience frustration at closing; improvements at Provident Funding Associates; Spanish translation efforts; tech firm acquires mortgage brokerage.

In the short term, there could be some volatility in the agency MBS market as investors adjust to the Fed’s moves. Longer term, volatility is expected to recede, helping investors in agency MBS.

Foreign demand is an area of focus for Ginnie as the Federal Reserve has scaled back its purchases of agency MBS.

FHA Commissioner Julia Gordon spoke Tuesday at an online housing counseling conference hosted by the Department of Housing and Urban Development’s Office of Housing Counseling.

The changes are effective Sept. 28 and are necessary to improve the long-term stability of the HECM program, FHA said.

Lower rates this winter could create a small boost in refi volume, but don’t expect a massive wave of refis like a few years ago.

The outlook for Fed action is largely positive for MBS investors, with interest rate volatility expected to decline. Still, rate cuts will introduce a risk that has been limited for years: prepayments.

The Federal Reserve is widely expected to reduce the federal funds rate on Sept. 18. The initial rate cut is already priced in to mortgage rates.

Interest rates continue to be the top priority for borrowers when choosing a mortgage lender, according to a study by Corporate Insight, but borrowers also value interest rate locking options and rate matching.

Interest rates on mortgages declined as the traditional homebuying season nears an end. Demand for purchase mortgages also continues to be limited by weak inventory of homes for sale and elevated home prices.