Home sales plummet

by Justin da Rosa28 Oct 2015
The expected rush of originations in the ramp-up to TRID implementation failed to materialize, according to recently released stats.
New home sales fell by 11.5% to 468,000 annualized units in September – a far greater drop than the expected 0.4% decline.
Inventory of unsold homes, meanwhile, shot-up 4.2% to 225,000 in September from 216,000 in August.
The data may come as a surprise to mortgage brokers, many expecting an influx of sales just prior to the TRID implementation.
However, many reported a greater than average number of applications near the end of September, meaning October’s sales figures may benefit from that business boom.
“We got a lot of calls and I’ve spoken to others in town who experienced the same thing,” Scott Palmer, an originator with Colorado Professionals Mortgage, told Mortgage Professional America earlier this month. “There was enough information out there and people knew transactions would start taking longer after October 3.”
According to the Mortgage Bankers Association’s most recent data, applications were up 11.8% week-over-week for the seven days ending October 16.
However, application levels for the next few weeks will be hard to predict, according to the MBA.
"On an adjusted basis, application volume increased last week, led by a sharp rebound in government volume,” Mike Fratantoni, MBA's chief economist, said in a release. “We expect that application volume will remain volatile over the next few weeks as the industry continues to implement TILA-RESPA integrated disclosures"


  • by | 10/28/2015 2:57:27 PM

    The market was not driven by owner/occupants. The average working family cannot afford the average working family's home. Why? Because of spec buyers. The typical working home seeker cannot compete against flippers and foreign REITs. When the latter buyers back off, the bubble deflates as is happening now. The natural laws of physics and economics always prevail in the long run.

  • by CAloanofficer | 10/29/2015 5:20:41 PM

    Just heard that we cannot request income or assets documents prior to releasing an LE on refinance transactions. Verbal qualification is not going to protect the consumer. It is just going to make them hate getting a mortgage even more.


Is TILA-RESPA a good or bad thing long term?