Ask the Expert: Refis are still out there

by MPA16 Jun 2014
By Dave Hershman
Special to MPA

Do you see refinances coming back at any time this year? My refi business has completely dried up and I am not sure how I am going to replace the lost income.
--Kevin from Michigan

There is no doubt that we are out of the refinance boom. Refinances dominated the market for the past three or so years with a peak of over a 70% market share. However, don't get the idea that there are no refinances out there. According to the Mortgage Bankers Association, refinances are hovering at around a 50% market share as of the middle of May. That is a several hundred billion-dollar market. You must understand that as the market changes, so will the type of refinances. For example, as home values increase more will refinance to take cash out to finance home improvements or pay off consumer debt. Others will take advantage of ultra-low 15 year rates to shorten their terms. Still others will see longer term hybrid adjustables as an opportunity to lower their payments.

You need to adjust with the markets. That includes a greater emphasis on purchases but also includes a different refinance marketing strategy. Look for those who are paying FHA mortgage insurance but values have increased. Work with home improvement companies and financial planners. Lower payments and lower rates are not going to be the only focus with rates moving up.

Note: I am delivering a free webinar, Originating Refinances in a Challenging Environment on June 25. You can register here:  
--Dave Hershman

Do you have a reaction to this commentary or another question you would like answered? Email Dave at
Dave Hershman has been the leading author and a top speaker for the industry for decades with six books authored and hundreds of articles published.   His website is  If you have a reaction to this commentary or another question you would like answered in this column? Email Dave directly at   



Should CFPB have more supervision over credit agencies?