Prepayment Rate Surges; Servicers Drop Ball on Retaining Customers

Home / Blog / Prepayment Rate Surges; Servicers Drop Ball on Retaining Customers

Posted To: MND NewsWire

Prepayment rates historically tend to increase in the spring, but this year they have been exceptionally high. The rate has risen during March in 18 of the past 19 years with an average gain of 21 percent. In its March Mortgage Monitor Black Knight says that prepayment activity increased by a total of 40 percent in February and March and in March alone by 28 percent. It was the largest increase in 2.5 years. While home sales are what usually drive spring increases, this time it is the softening of interest rates and a growth of refinancing. That means some significant differences in the prepayment rate across both investor types and loan vintages due to varying rate sensitivity. The rate is highest among portfolio lenders at an aggregate of 58 percent over the two months, and FHA/VA loans with...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Source: http://www.mortgagen...

0c078ab1 66cb 4e9e 9dac c2fe9f358e26 6b1cad08 b18c 4900 aa3a 222e7674661c 739f6c82 df01 41b4 9ae2 b03dc47fe5a8 5dd2db60 67f9 428a b361 0e1a98e1ddd1 90c3ca73 4012 445b a1e7 6965fe604043 56273cef 4f15 49cd b748 9c0e21e5fe18 6e2da003 3192 4950 93da b4c6a7a6deb1 881167d3 141e 475a 8372 7abda54a3501 716e3ba7 0c33 4f12 84ad 4aed67017d53 8e98375e 3281 48ce 8fa1 632f4189050b eda87f72 0609 4149 9d6c 7e6efc7f218e 7e7f0b2c b897 40df b4d7 a573ee8da965 b22da683 1fb6 4c4e 945e f18b50a87a9e b6775fc0 b3cd 4d9b 99a1 cabdcbcfeed5 339604f9 4026 45d3 9531 f47ccae1d0b7 eba7e9c9 336a 45e4 82f9 6b8500a1f809 83baea0e 54a6 46b7 a94f 69f645dd7a58 c9367272 55ee 4d57 b633 887879b88f71 36125ba2 2648 4eec 9973 01221306b1aa 4748795f b862 41db 8793 de6faa163181 52de5e76 6ecd 421c a8a1 b8658ecf24d0 58286496 e175 4135 84c9 983fb665460d 1c72d798 83db 4824 aef3 e6e3b3fad129