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The drop in rates, combine d with a sluggish realestate market, now meanzs that up to 90 percent of business for locao title and escrow companies is comin from refinancings and not home purchases. The trenxd toward refinancing started in Januaryand February, when interest ratese began to drop. after a slow start in activity began to surge around midmonthj whenlenders — including local banksd such as , , and — dropped the rate for a 30-year fixed-rate mortgage to as low as 4.25 percent. “Oue volume has tripled in the lasttwo weeks,” said Davir Pietsch, president of Title Hawaii’s largest title and escroqw company. Title and Escrow of Hawaii Inc.
saw a 50 percentg increase in business during the second half of said state PresidentMatt “We actually were busy in Decemberd and January and into the first part of then it kind of fell he said. “It was pretty much right in line with the trendx in the rates ofthe 30-year mortgage.” refinancing has become so hot that the said last mont that it expects mortgage originations to hit almosy $2.8 trillion this year, which would make 2009 the fourth-highesyt year for loan originations. The othert record-high years — 2002, 2003 and 2005 — saw high numberds of subprime and jumbo theassociation noted.
The loans in 2009 will be more with most being Fannie Mae andFreddie Mac-eligiblr loans, or eligible for FHA insurance, the associatiom said. But that also means homeowners must have goodcredigt scores, full documentation and equityt in their homes to qualify for the “A lot of people are putting in their applicationas in hopes they’ll get the loan,” said Harrgy Kanehailua, vice president and title operations manage r at Old Republic Title & Escrows of Hawaii.
“We also see the and the ratio is not that Another difference in 2009 is that the toughedrstandards — combined with the higher volume that is puttingv stress on lender processors and underwriters, appraisers and title companiesx — are causing mortgage refinances to take between 45 and 60 days to “A year ago it was like within 30 said Kanehailua, who said Old Republicc expected this week to have the highes number of closings so far for 2009. Pietschh said most of the loans that have gone through escroqw at Title Guaranty were taking cash out to payoff high-interesg credit card debt.
“I’m surprised that most refinance transactionse are to take cash out and not to reducre theirmonthly payments,” he said.
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