Excerpt from June 2015 Mortgage Industry Newsletter:

A while back Kroll Bond Rating Agency released a presentation that was shown at the Real Estate Symposium in Salt Lake City, UT. The presentation gave an overview of the market, discussing how low interest rates are causing home prices to rise and are encouraging sales of mortgages into the agency market but are not increasing mortgage lending, particularly purchase mortgages. Industry regulations and requirements are having an adverse effect on new 1-4 family mortgage loan originations, which are at a 12 year low. Commercial banks are also exiting the 1-4 family mortgage origination market as almost 80% of the compliance costs for small banks derive from residential lending. Bank revenues from mortgage sales, securitization and servicing were down $9.1 billion or 35.1% YoY. For more information regarding the presentation, contact info@kbra.com.