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Volume 16 - Number 3

February 10, 2012

Downloads Available: Mortgage Earnings Snapshot: 4Q11


Lenders Notch Gains in Mortgage Banking Profits

The boom in mortgage origination activity in the fourth quarter of 2011 carried mortgage banking profits to their highest level in nearly two years, according to a new Inside Mortgage Trends analysis of earnings reports from 22 companies. The group, which includes all the top originators and servicers, reported a combined $5.10 billion in mortgage banking income during the fourth quarter of 2011. That was up 20.0 percent from the previous three-month period and represented the most profitable quarter for the group since the first quarter of 2010. On a full-year basis, the results don’t...(Includes one data chart)

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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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