The January 2016 edition of Black Knight Financial Services' (BKFS') Mortgage Monitor report found that the pool of borrowers who could qualify for and benefit from refinancing their 30-year mortgage grew by 30 percent just in the first six weeks of 2016.
The fact that mortgage interest rates fell by 30 basis points in the first six weeks of 2016 gave 1.5 million more borrowers an incentive to refinance. That left the total refinanceable population at 6.7 million, according to BKFS.
The decline in interest rates in early 2016 also meant that 40,000 more borrowers met the requirements of the Home Affordable Refinance Program (HARP) and had an interest-rate incentive to refinance, the company said. HARP is set to expire at year-end.
The January Mortgage Monitor reported that, with the rate decline, 3.3 million refinance candidates could save $200 or more each month. The report noted that nearly 1 million borrowers could save more than $400 per month.
The January report found that, compared with year-end 2015, there are now 800,000 more borrowers that can save more than $200 per month.
On another front, the January Mortgage Monitor also looked at states where there is potential risk exposure for servicers due to court deliberations around how statute-of-limitations law is applied to foreclosure actions.
Using data supplied by Black Knight Financial Services' McDash[TM] loan-level mortgage performance databases, the report found there are three states where various courts are deliberating statute-of-limitations law and how it should apply to foreclosure actions. Those...