The refinancing market is fast evolving and a big area of concern for mortgage lenders and loan officers is early pay-off (EPO) penalties. Lenders and loan officers are now taking steps to ensure this issue is addressed ahead of any possible return of refis.
Some key strategies they discussed include exploring ways to reduce rate lock costs, evaluating the refi advisor offerings, and taking a hard look at post close data. Reducing rate lock costs can help reduce the effect of EPO penalties if a customer unexpectedly pays off their loan early. Evaluating the refi advisor offering can also help lenders assess customer profiles and develop more efficient refi packages. Taking a hard look at post close data can help lenders better understand customer’s behavior and preferences for a successful refi approach.
In summary:
• Reducing rate lock costs to reduce the effect of EPO penalties
• Evaluating refi advisor offerings to assess customer profiles for more efficient refi packages
• Taking a hard look at post close data to better understand customer behavior
You can read this full article at: https://www.housingwire.com/articles/the-next-refi-booms-double-edged-sword-epos/(subscription required)
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