Volume 17 - Number 25
December 6, 2013
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Mortgage banking income fell sharply in the third quarter and the compliance outlook remained murky, but banks reported a huge improvement in loan buybacks, according to a new Inside Mortgage Trends analysis of call-report data. Banks and thrifts repurchased or provided other indemnification totaling $1.998 billion during the third quarter, the lowest quarterly amount for the industry in five years. Banks first began reporting repurchase data in their call reports ... [Includes one data chart]
Since the beginning of 2012, its been relatively difficult to lose money in mortgage banking, but that was no longer the case in the third quarter of this year. According to the Mortgage Bankers Association quarterly performance report, slightly more than one fourth of the industry failed to turn a profit during the third quarter. Starting in the first quarter of 2012, over 90 percent of mortgage bankers in each period reported net pretax profits. The average pretax income for ...
Prospect Mortgage of Sherman Oaks, CA, is a strong candidate for an initial public offering: Its a retail-only originator whose loan production is top-heavy in purchase-money loans and it has all the right agency and FHA approvals. The privately-held firm also has a $13 billion servicing portfolio and licenses to lend in 48 states. Moreover, in early September it raised $150 million by selling five-year senior notes in the capital markets. Over the past few months rumors have surfaced that the ...
Lender-paid mortgage insurance has garnered renewed interest lately from mortgage lenders as an alternative to FHA-insured loans, whose increased costs have shut out many cash-strapped borrowers. David Williams, vice president of RightStart Mortgage in Pasadena, CA, said his firm has been getting a lot of requests from wholesale brokers for conventional conforming loans with LPMI because the FHA product has lost its competitive edge. With borrower-paid private MI, the homeowner pays a monthly ...
Nonbanks are better than banks at controlling foreclosure timelines and servicing costs, according to industry analysts. Nonbank special servicers have significantly increased their servicing portfolios in the past year and expect to acquire even more servicing from banks in 2014. The cost of servicing for banking institutions has increased in lockstep with the additional processes to maintain compliance with regulatory requirements, according to Fitch Ratings. In response, a number of large banks have employed ...
Capacity constraints and demand for same-servicer refinances helped lenders book significant profits in recent years, according to an analysis published by the Federal Reserve Bank of New York. Lenders profits have declined in recent quarters with the shift toward purchase-mortgage originations due to higher interest rates. A group of researchers determined that higher prices paid by investors in agency mortgage-backed securities in recent years werent offset by corresponding increases in ...
Independent mortgage bankers saw increased value in their servicing assets that helped offset slumping production volume in the third quarter, according to a quarterly survey by Richey May & Co. The accounting and business advisory firm found that overall production slid 12.4 percent from the second quarter, and refinance volume was down 42.0 percent. The survey also found that average values of indies servicing portfolios increased by seven basis points from the second quarter to the third ...
A ranking of government-sponsored enterprise purchase-mortgage business by state, including break-outs for Fannie Mae, Freddie Mac and market share of first-time homebuyers.
- GSE Seller Profile: 3Q13
- GSE Repurchase Activity First Half 2013
- Top Mortgage Players: 2Q13
- Mortgage Profitability Report: 2Q13
- GSE Market Profile: FY12
- GSE Private Mortgage Insurance Profile
With loan volumes falling, particularly refinancings, where do you see originations coming in at in 2014?
- $1.4 trillion to $1.6 trillion
- $1.2 trillion to $1.39 trillion
- $1 trillion to $1.19 trillion
- Beam me up, Scotty
Most Popular Stories
- What Were Hearing: Will Watt Make the CSP a Priority at FHFA? / FHFA May Pick a CSP Chairman First / Luke Hayden? / Fear and Loathing in Servicing-land / Why is a Top-Ranked LO Being Sued by WJB?
- HUD Plans Nonperforming Loan Auction for Mid-December
- Agency MBS Issuance Drops in November, Hits 28-Month Low
- Ocwen Plans Non-QM, Nonprime Originations
- Rating Criteria for Non-QMs Wont Be Ready In Time