Both mortgage borrowers and lenders are reaping the benefits of record-low interest rates, with the Mortgage Bankers Association reporting a jump in refinancing to 78 percent of residential mortgage activity. Paul Miller of FBR says many of the loans being refinanced were just refinanced six months to a year ago, and while banks are taking servicing losses as a result, he thinks “the hedges will cushion the value changes.” Refinancing volume is on the rise due to changes in the HARP program, and experts say volumes will increase even more when the FHA reduces fees and premiums for its refinancing program, but some lenders are taking longer to process refinancings due to staffing issues. | Read More