Based on what I’m hearing from a couple residential appraisers I know the FHA lending pipelines are quite active right now.

The demand for mortgages is still pretty high. Most of those borrowers with ARMs know they’ll be better off if they can convert over to a fixed interest rate. When a mortgage broker collapses for lack of sufficient business that doesn’t mean they had *no* business, it only means they didn’t have enough to cover their overhead. The volume they were getting has to go somewhere. When a bunch of MBs fail it reduces the competition for the survivors.