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Volume 20 - Number 17

August 19, 2016

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Bank Call Reports Show Modest Increase In Mortgage Banking Income for 2Q16

Commercial banks and savings institutions reported a combined $3.581 billion in mortgage-banking income during the second quarter of 2016, according to a new Inside Mortgage Trends analysis of call reports. That was up 8.3 percent from the $3.307 billion the industry reported for the first quarter of 2016. For the first six months of the year, banks reported $6.888 billion in mortgage-banking profits, down 31.7 percent from the same period in ... [Includes one data chart]

Nonbanks Battered by MSR Accounting in 2Q16

Publicly traded nonbank mortgage companies had widely varying results on their mortgage-banking operations during the second quarter as heavy losses reported by two firms pulled the group’s earnings underwater. Nine nonbanks reported a combined net loss of $339.5 million on mortgage-banking activity for the second quarter. That was actually an improvement over the $510.0 million the group lost in the first three months of the year. Nationstar ... [Includes one data chart]

Plenty of Concerns Slowing Adoption of eMortgages

The mortgage lending industry continues to lag behind the level at which proponents of electronic mortgages – otherwise known as eMortgages – think lenders should be in adopting the technology. A recent survey by Fannie Mae and Freddie Mac reveals that there are still plenty of obstacles across a range of issues and pain points. “We found that eMortgage adoption continues to gain traction with lenders; however, the adoption has been slow due to ...

Should Loan Officers Worry About Automation?

With residential origination costs constantly rising, should rank-and-file loan officers worry that their jobs will eventually be automated away thanks to advances in technology? The thinking goes like this: Lenders are spending hundreds of million dollars a year in software upgrades to automate as many LO functions as they can. The ultimate goal is to reduce the number of loan officers and whittle down costs. Depending on where they work, mortgage loan officers can earn ...

New Residential Turns Profits with Servicing Assets

While holders of mortgage servicing rights have taken large writedowns in recent quarters due to declines in interest rates, New Residential Investment has managed to report relatively large profits. New Residential had $68.65 million in net income attributable to common stockholders in the second quarter of 2016, down from $111.74 million the previous quarter and $75.12 million in the second quarter of 2015. New Residential held $1.36 billion in excess MSRs ...

Retroactivity Concerns Over Civil Penalty Hikes

With federal civil monetary penalties set to rise significantly over the next couple of months, mortgage industry stakeholders are getting increasingly concerned about retroactivity in some of the interim final rules adopted by federal agencies to implement the revised penalty amounts, according to industry attorneys. Although application of the adjusted civil penalty amounts to violations that occurred prior to the passage of the Federal Civil Penalties Inflation Adjustment ...

Homeownership Rising Among Older Millennials

While the homeownership rate for people 25 to 34 years old remains well below the levels seen for that age group before the financial crisis, analysts at Fannie Mae note that the homeownership rate for millennials is starting to increase. Fannie defined millennials as those born between 1981 and 2000. Patrick Simmons, director of strategic planning in Fannie’s economic and strategic research group, turned to the Census Bureau’s American Community Survey to ...

Poll

The yield on the benchmark 10-year Treasury fell to all-time low of 1.34% recently. How much better will originations be at your shop in the second half compared to 1H, if at all?

Better by 1% to 10%.

30%

Better by 11% to 25%.

39%

Off the charts better. Applications are great now.

22%

Worse than 1H, but not by much.

4%

A lot worse. But not sure on the damage.

4%

Housing Pulse