The Smart Team of NOVA® Home Loans

Prepays Nosedive but Cash-Out Refi's Near 50% Share

Posted To: MND NewsWire

The conditional prepayment rate (CPR), the annualized percentage of total mortgage principal that borrowers prepay on a pool of loans in a given time period, dove steeply in the early part of this year. Black Knight Financial Services reports that there was a 40 percent decline in the rate over the active first lien mortgage universe. The company’s current Mortgage Monitor, covering mortgage performance data through the end of February, looks at CPR, breaking its impact down by investor category, loan vintage, borrower credit score, and geography. While CPR is typically driven by refinancing , a lot of the volume can be accounted for by housing turnover . Winter months are historically the low point for prepays, and this February’s 9.2 percent rate was the lowest since February 2014 when interest…(read more)

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Source: Mortgage News Daily

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