As you probably already heard in the news about the U.S. mortgage market, the FHFA is suddenly implementing a new price adjustment for all refinance transactions of 50bps starting in September 2020. What did you do in reaction to this news? With our nSight tool here at Nomis, we saw some lenders take note of competitive changes and make some major moves, while other were asleep at the wheel.

Looking just at the 30-year fixed refi rates above, we have seen a wider distribution of rates in the market today (Aug. 13). On average, there is always a pretty healthy mix in the range as a result of differing business goals and strategies, funding cost, and other considerations. But today, both ends of the tail are elongated, which implies that some lenders have overcompensated on the high side while some have not yet reacted at all. The extreme right tail is immaterial as those are lenders who are deliberately pricing themselves out of the market. The fact that we have a two-peaked distribution with healthy ranges around both peaks implies that there is uncertainty in the market.

It’s clear that every mortgage lender is still processing and reacting to this news. It is critical to know all that is going on in the market from a bird’s eye view in real-time and then taking a deeper dive into geographies, products, and competitor activity that could affect your portfolio and your refi business. Having that market insight on-hand in a timely manner is crucial to getting your business back in order quickly without taking a significant hit to your bottom line.

With our tool, nSight for Mortgages, you can quickly:

1) Understand how the mortgage market is reacting to this news

With our Research Lab, you can track more than 340 lenders’ pricing over time and see who moved and by how much You can also take a look at averages, as well as broader, more aggregated trends by segment.

2) Assess how this impacts revenue for your refi business

Of course, this news will hit your bottom line — but what will really affect your long-term financials is losing market share. With our Tactical Analytics, you can keep your fingers on the pulse of what your competitors are doing, ensure that you are accurately priced, and understand how your nPOP and nPEP scores compare to the market. You should remain tactical and informed when executing on your strategy and not just reacting (or overreacting) to the market.

3) Execute on your new refi strategy and pricing moving forward

Leverage Margin Monitor to see exact pricing differential between products, geographies, loan amounts and more. Considering this recent news, it is beneficial to understand which pricing cells are less price sensitive where pricing increased and other pricing cells that are more price sensitive which did not move as much.

During these uncertain times, Nomis has the quick and easy tool to help you stay informed and up-to-date. Don’t hesitate to reach out so we can provide you with the intelligence on how to react to this sudden change in the market. We’re here to help.

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