120 day rate locks

According to Fannie Mae, overall mortgage production in the U.S. is expected to decline 40% in 2022 compared to the previous year, forcing lenders and LOs largely to scrap for purchase businesses.

With competition fiercer than ever, some lenders aggressively reduced their rates and offered lock-in periods for as many as 120 days. But not all applicants will have a 770-credit score like they did in 2020 and 2021.

In a new report, analysts at Moody’s Investors Service said: “Credit standards have loosened from pandemic-sparked tightening, and the credit quality of new consumer loans and mortgages in securitization pools will likely continue to weaken to varying degrees across sponsors.”

The analysis considers a strong job market, home prices stabilizing at record highs after a boom and delinquencies settling into low levels at least through next year. However, inflation continues to erode household resources, and rising rates bring higher debt burdens to families.

(CA) The implication for notaries being what, then? An increase in business volume; a decrease? An adverse effect on fees? I suppose the story is newsworthy, but posting it on this site doesn’t do much if there’s no accompanying perspective, insight or advice. I’m not being argumentative; rather, I’m requesting that knowledgeable and experienced notaries who like to opine on this forum simply supplement their postings with actionable ideas when they can.
I do my very best to do that when I am able.

With rates going up, I bet everyone is seeing more purchases vs. refi’s, maybe 50/50 or 40/60. Also that some deals will take up to 4 months to close with 120 day rate locks. The Feds increasing rate another 3/4 point this month, stay frosty.

(CA) Who cares if deals take 120 days to close? The notary doesn’t get the deal until it’s about to close anyway. Nothing has changed in that regard. It’s not like the notary will have to wait 120 days to get paid if the signing service is any good.
It’s not news that refi’s have largely dried up. Just read the posts on this forum and look around to see that all the old timers and frequent contributors have become very quiet on this forum. Is it any wonder? All the beloved refi’s have gone away.

Thanks for taking the time to share. Knowing the larger picture besides our loan signing is important. We have to continue to know the industry we service and the industry we’re in. Again, thanks for just sharing.


I have been in the business since 1982. What goes up will come down. What is slow now will be pull your hair out later. The slow business took out a lot of poor loan officers and it will notaries that was in it thinking big bucks. So, I look at it as a weeding out. Hang in there.


Notaries complaining being paid late, weeks and months after doing signings, I am thankful because I am still collecting checks for signings I did weeks and months ago…

Refis have not gone away. I’ve still had at least 40 this month. They are either paying off debt, working on their homes, or getting a divorce.

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