'Mortgage cash-out record?' Ahem

Peeking inside the numbers behind Black Knight's cash-out release
  • In Q3 2015, 42 percent of all first lien refinances involved a cash-out component.
  • However, Black Knight has gotten caught in the infernal terminology of mortgage underwriting.

Black Knight, the excellent data source and consultant to mortgage servicers, reported yesterday, “In Q3 2015, 42 percent of all first lien refinances involved a cash-out component, the highest share since 2008. Likewise, the average cash-out amount — over $60,000 — is the highest since 2007.” Sounds reasonable. But little in mortgageland is reasonable.