St Casimirs Mortgage Minute

End of Refi Boom Could Trigger Consolidation: U.S. Bank's Aneshansel

Incoming U.S. Bank Home Mortgage President Rick Aneshansel contends that the decline in refinancing will not be compensated by purchase volume, and is likely to spark a wave of consolidation. "If industry volumes are down, the industry has to resize itself," he says. The Mortgage Bankers Association reports that rising interest rates have caused refinance volume to fall from 72 percent of the mortgage market to 68 percent since January. In addition to the expected slowdown in refinancing, banks are still trying to absorb new mortgage regulations from the Consumer Financial Protection Bureau requiring proof of a borrower's ability to repay a loan. "We see continuing [home price] appreciation and as people get right-side up there's an opportunity to grow home equity lending in a responsible way," Aneshansel says. "We believe that will be a growth product in the next few years."

From "End of Refi Boom Could Trigger Consolidation: U.S. Bank's Aneshansel"
American Banker (06/12/13) Berry, Kate