Industry NewsMortgage

IEmergent sees refi surge in 2009

Stimulus bill, foreclosure initiative bode well for lenders

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Mortgage market research firm iEmergent projects that the $787 billion stimulus bill and the Obama administration's new foreclosure prevention initiative could boost mortgage loan refinancings by 55 percent in 2009.The Des Moines, Iowa-based forecasting firm is also forecasting a slight increase in purchase mortgage originations, compared to the company's previous forecast for 2009-13.The iEmergent forecast now projects 4.4 million purchase loans totalling $735 billion in 2009, 5.1 million refinancings totalling $916 billion, or 9.54 million mortgage originations in all amounting to $1.65 trillion.The projected 55 percent growth in refinance volume is based on expectations that the Obama administration's plan to help lenders modify or refinance up to 9 million loans will keep pressure on mortgage rates, unfreeze credit, and slow the rate of home-price declines.The plan includes a $75 billion homeowner stability initiative the administration hopes will spur 3 million to 4 million loan m...