Magazine article Mortgage Banking

Ride the Wave

Magazine article Mortgage Banking

Ride the Wave

Article excerpt

SUDDENLY, IT'S BOOM TIME AGAIN. A COUPLE OF QUICK, AGGRESSIVE FED MOVES AND suddenly originators are working their tails off. This time around, there are a few different twists.

Remember those e-originators we had all written off? Hey, they love refi booms. It's a marriage made in heaven. It could rescue the down-and-out e-lenders from their VC famine, not to mention all but certain obscurity (or worse yet, existence as a bank subsidiary). Quicken Loans reported its January 2001 applications online soared by 159 percent over January 1999's volume. (Come to think of it, I can't remember January 1999--but the numbers sound good.) The refi wave could bring the more-securely capitalized e-originators back from their near-comatose state and give them a fighting chance. Web-refinancing channels will help serve the huge group of borrowers with coupon rates smack in the middle of refi-prospect territory. Call centers are nice, but even they give busy signals. The Internet is always open for business.

Brokers are getting ready to ride the gravy train to a record year if refi business continues to pump at levels apparent in February. But there is a little tension in the wholesale world as brokers are being briefed on new policies that restrict rapid, recurring refinancing of the same borrower. …

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