Mortgage Profitability, Earnings and Repurchase Activity

Bank Mortgage Banking Earnings

Chart ranking institutions by noninterest income from sale, securitization and servicing of of 1-4 family mortgages. Quarterly data available from 2010 to 2011.

2011 Data

2010 Data

Poll

Are current mortgage underwriting standards too tough?

Yes, they don’t reflect current market conditions and need to be adjusted to allow borrowers with below 700 FICO scores and smaller downpayments to qualify for mortgages.
Yes, and something needs to be done to significantly reduce repurchase or buyback risk so that lenders don’t apply even tougher underwriting overlays.
No, the standards are appropriate given current risks and the major default problems the mortgage market has experienced over the past several years.

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Housing Pulse