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36 FIRST ESTIMATE FOR Q4 GDP GROWTH: 3.2% e nation's economy continued to grow in the fourth quarter, helped along by improvements in consumer spending and business investment. In its "advance" estimate of real gross domestic product (GDP) in Q 4, the Bureau of Economic Analysis (BEA) put growth at an estimated annual rate of 3.2 percent. Real GDP increased 4.1 percent in the third quarter. e quarter's increase was driven mostly by positive contributions from personal consumer expenditures, exports, nonresi- dential fixed investment, private inventory investment, and state and local government spending. ose boosts were offset partially by declines in federal government spending and residential fixed investment, BEA reports. Economists took a mostly positive view of the report. Said Kathy Bostjancic, director for macroeconomic analysis for the Confer- ence Board: "With the housing market on firmer traction, the ingredients seem to be in place for the economy to remain on a strong growth path and not be interrupted by fiscal squabbling at the federal level. ... In summary, the economic performance in the fourth quarter and third quarter was a relatively pleasant change for the better. And more of the same could be in store this winter and spring." Real personal consumption expenditures increased 3.3 percent in Q 4, up from an increase of 2 percent in Q 3. e price index for gross domestic purchases, which measure prices paid by U.S. residents, increased 1.2 percent compared with 1.8 percent in the third quarter. Real nonresidential fixed investment grew 3.8 percent last quarter, slower than the 4.8 percent gain recorded the prior quarter. Meanwhile, real exports of goods and services increased 11.4 percent, nearly three times the increase reported for Q 3. On the other hand, the biggest weight on GDP growth came from federal government spending, which was down 12.6 percent com- pared to 1.5 percent in the third quarter. For all of 2013, the bureau estimates real GDP increased 1.9 percent compared to a gain of 2.8 percent in 2012. FHA TO ACCEPT E-SIGNATURES ON MORE DOCUMENTS In its ongoing bid to modernize its process- es, the Federal Housing Administration (FHA) granted expanded authority to lenders to accept e-Signatures on loan documents. e new policy allows e-Signatures on origination, servicing, and loss mitigation docu- ments. Also included are those related to FHA insurance claims and REO sales contracts. "By extending our acceptance of electronic signatures on the majority of single-family documents, we are bringing our requirements into alignment with common industry practices," said FHA commissioner Carol Galante. "is extension will not only make it easier for lenders to work with FHA, it also allows for greater efficiency in the home-buying and loss mitigation process." e expanded authority effects single-family forward mortgages and the agency's reverse mortgage products. While FHA does not currently accept e-Signatures on mortgage notes themselves, the agency says it plans to begin taking them at the end of the year. WHAT'S KEEPING BORROWERS FROM REFINANCING? A new commentary from Fannie Mae attempts to address a perplexing question: With mortgage rates down steadily in the last several years and greater opportunity for significant savings, why have so many borrowers elected not to refinance? Approximately 40 to 50 percent of mortgage borrowers say that they have not refinanced the mortgage on their current home, according to Fannie Mae's Housing Survey data collected through June 2013. Examining the topic in a study is Fannie Mae's senior manager of business strategy, Li-Ning Huang, Ph.D. According to Huang's findings, the top three reasons respondents cited for not refinancing are: » Not reduce payments enough » Closing costs too high » A desire not to lengthen loan terms e data also shows some borrowers have tried to refinance in the past but were unsuccess- ful. According to the report, borrowers among that group tend to exhibit higher financial anxiety, doubt their ability to get a mortgage today, and hold a more pessimistic attitude overall about their future financial situation and the overall economy. Findings from the survey suggest that "bet- ter awareness of one's financial situation could encourage consumers to consider refinancing and to take action," Huang said. Huang notes that financial education, awareness, and messaging are critical factors in encouraging troubled homeowners to refi- nance. Additionally, resources and tools that help build financial literacy and awareness could lead to higher rates of refinancing.