Hundreds of billions of servicing are being bought & sold out there. With Freddie & Fannie servicing trading at 5:1 (mid 3’s for Ginnie servicing), given current rates versus where servicing portfolios are, servicers are tapping into this source of capital instead of letting it sit on their balance sheet. Think of it as a savings account for a lender that retains servicing: with revenues dipping, the cash from a servicing sale can come in handy. Meanwhile, lenders and loan originators are being asked, “Are you trying to win, or just trying not to lose?” Investors and lenders are sharpening their pricing pencils for purchases at the expense of refis. Webinars abound about how MLOs, and their parent lender, should go after the purchase business. It’ll be a dog fight out there, at least for new home business, much of which goes to builder’s lenders. Recently we learned that mortgage applications for new-home purchases in December decreased 7.1% compared with December 2020, according to the latest Mortgage Bankers Association (MBA) Builder Application Survey (BAS). Compared with November, applications decreased by 5%. “Applications to buy a new home slowed in December, while the activity remained tilted to higher-priced homes,” says Joel Kan, MBA’s fabled AVP of economic and industry forecasting. Lender & broker services and products Grow your business in 2022 with Northpointe Bank Correspondent Lending. Northpointe’s 100% financing no mortgage insurance Medical Professionals program offers loan amounts up to $1,000,000 and allows 14 types of eligible professional designations, including dentists, pharmacists, veterinarians, and chiropractors. Eligible for borrowers currently practicing or beginning employment within 90 days of loan closing. Leverage Northpointe’s eNote delivery to increase your efficiency in 2022 while improving and streamlining the closing experience for borrowers. eNote delivery is fully digital, compliant, and utilizes Remote Online Notarization (RON), so borrowers can sign documents even when they aren’t in the same physical location as a notary. In addition, home loans typically fund faster with eNote delivery since all documentation is electronic. Northpointe Bank provides tailored solutions to maximize your profitability and help your business grow. Email us at firstname.lastname@example.org for more information.