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The MReport Webcast: Thursday 7/14/2016

While U.S. economists debate how a set of troubles playing out overseas will affect the American mortgage market, Kroll Bond Rating Agency predicts that these troubles will probably not bring the refinancing volume some might think. Kroll’s outlook report for the second half of 2016 stated that the financial troubles in Europe and China that are helping to keep U.S. mortgage rates near historic lows will probably boost refinancing volumes less than expected.

At the same time, Kroll reported that continued strong growth in mortgage loans for new home purchases will probably offset at least some of the difference. Also, mortgage lending by depositories fell by 14 percent from last year, with loans securitized with servicing retained down to 704 billion dollars, and mortgage banking profits tumbled 27 percent from the fourth quarter of 2015 to the first quarter of 2016. Kroll stated that the quote, relentless bombardment of prudential and consumer regulators, close quote, have made single-family mortgages the most problematic asset that a bank can originate and hold.

Borrowers appear to be much more satisfied with the mortgage process than the industry may think—and borrower satisfaction has been slowly increasing each month for nearly a year, according to the inaugural monthly STRATMOR Insights Report for July 2016. The satisfaction index revealed that recent borrower satisfaction scores have averaged about 90 out of 100, which the report found noteworthy because of the complexity of the process and the much maligned image of the mortgage industry.

About Author: Seth Welborn

Seth Welborn is a Harding University graduate with a degree in English and a minor in writing. He is a contributing writer for MReport. An East Texas Native, he has studied abroad in Athens, Greece and works part-time as a photographer.
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