US banks swamped by ‘refi’ fever

The rush of US homeowners to refinance mortgages at lower rates is creating a boom in the home lending business, prompting banks including Bank of America and Wells Fargo to hire thousands of new employees for extra shifts to process mountains of paper. Lenders could originate up to $2,780bn of new mortgages this year, the Mortgage Bankers Association says, and 80% of that activity could involve refinancing.

http://www.ft.com/cms/s/0/285792b6-3fea-11de-9ced-00144feabdc0.html

 

That's good news for the owners of those 3 or 4 US homes left that don't have a new kitchen or a giant jacuzzi yet

 

Maybe that explains why Lending Tree stock symbol TREE is trading at or near historic high price.

 

I can verify that mortgage processors at local banks here in Phila area are working through the night on a regular basis.

 

so few refi's are actually going through...


new tight guidelines -credit, income, ltv
no jumbos (for the most part)
low values continue

 

that's interesting to hear ralph. I'm in the philly area also and I'm renting a house for less than half what the mortge payment would be if I purchased it. Please send me a pm if you have a chance.