Mortgage earnings declined across a group of 24 banks in the second quarter of 2022 as rising interest rates continued to eat into originations and margins. The outlook for the third quarter isn’t great either. (Includes data chart.)
MBA punts on recession forecast; interest rates on mortgages expected to decline; Flagstar merger dragging on; homeowners want mortgage financing for energy improvements.
Last year was a record year in terms of loan production at $4.4 trillion. But oftentimes, when you have a boom, there’s an ugly hangover in the form of job cutbacks. How bad might it get?
A cash management plan submitted in bankruptcy court by FGMC would “circumvent” the rights of FGMC’s warehouse lenders, according to Customers Bank and Flagstar Bank.
First Guaranty Mortgage Corp., a prime and non-agency lender owned by PIMCO, has gone bust, leaving a long list of creditors in its wake. The big question: Are there other FGMCs out there?
Overall, banks saw a 24% decline in mortgage banking income in the first quarter of 2022. Many banks bucked the trend with large increases in income compared with the previous quarter. (Includes data chart.)
The rapid increase in interest rates seen in the first quarter took a big bite out of income from production and helped to goose servicing earnings. And while a downturn in originations was expected this year, it could be worse than expected.
Higher interest rates didn’t have much of an impact on home price appreciation in March; Freddie Mac launched new automated underwriting capabilities; Fitch shifts its outlook for ratings of Finance of America Companies to negative; MISMO remains busy.