Lykken on Lending

Lykken on Lending

A Weekly Podcast by Mortgage Professionals

4-22-19 Hot Topic – Origination, Rates, Trends and Latest Stats of Lender Profitability

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In this episode of Lykken on Lending we have Michael Fratantoni in our Hot Topic segment.

Michael FratantoniMichael Fratantoni
Chief Economist, Senior Vice President, Research and Industry Technology
Mortgage Bankers Association

Michael Fratantoni is MBA’s Chief Economist and Senior Vice President of Research and Industry Technology. In this role, he is responsible for overseeing MBA’s industry surveys, benchmarking studies, economic and mortgage originations forecasts, industry technology efforts, and policy development research for both single-family and commercial/multifamily markets. Additionally, Fratantoni is president and member of the Board of Directors of MISMO and serves on the CSP’s Industry Advisory Group and the membership committee of MERS.

Prior to joining MBA, Fratantoni worked in the industry in risk management and senior economist roles at Washington Mutual and Fannie Mae. He received a Ph.D. in economics from Johns Hopkins University and a B.A. in economics from The College of William and Mary, and has served as an adjunct professor at the University of Washington, and Johns Hopkins, George Washington, and Georgetown Universities.

Topics Covered in this Episode:

1. Outlook for mortgage origination volume
2. Outlook for mortgage rates
3. Current views on home sales and home price trends
4. Latest stats on lender profitability

Excerpts from this Episode:

  1. Listen: We’re expecting a 5 percent growth in purchase volume and less than 10% drop in refi…
  2. Listen: Reason for increase in purchase market over the next couple years…
  3. Listen: A macro look at the economy… and lots of worries out there…
  4. Listen: Housing values… is there a cliff we’re about to fall over like last time…
  5. Listen: A look at volatility… can we rely on what used to be in order to predict the future…
  6. Listen: Indicators showing risk is higher than it was 6 months ago…
  7. Listen: The annual MBA report showing only 69% of the industry was profitable in 2018…
  8. Listen: Examine the details in order to become best of breed or at least above average…
  9. Listen: We think we will be in a purchase-dominated market for the next 4 to 5 years…
  10. Listen: Get the ability to track along with your peers in the mortgage industry…