Bank Profitability

Browse articles from all of our Newsletters related to Bank Profitability.

April 20, 2017 - Inside Mortgage Finance

The Early Read: Bank Mortgage Lending Down in 1Q17, Nonbanks Fare a Little Better

Based on mortgage results reported thus far, the first quarter was a nasty time for new originations for both the megabanks and some of the regionals, with non-depositories reporting slightly more benign production figures. Market leader Wells Fargo posted a hefty 38.9 percent one-quarter drop in mortgage originations. Second-ranked JPMorgan Chase reported a slightly less severe 23.0 percent drop in home loan funding. Citigroup, which a few months back made a strategic decision to deemphasize its role in home lending, suffered a 32.1 percent drop. Then there’s...

April 20, 2017 - Inside Mortgage Finance

Agency Servicing Market Continued Growing In 1Q17 as Nonbank Appetite Remained Robust

The outstanding supply of Fannie Mae, Freddie Mac and Ginnie Mae servicing continued to grow during the first quarter of 2017 despite a downturn in new mortgage-backed securities issuance by the three agencies, according to a new analysis and ranking by Inside Mortgage Finance. A total of $6.225 trillion of agency single-family MBS was outstanding at the end of March, up 1.4 percent from December 2016. That number does not include agency servicing of whole loans held on the books of Fannie and Freddie, or a smattering of adjustable-rate mortgages in seasoned Freddie securities. Freddie posted...[Includes two data tables]

April 14, 2017 - Inside Nonconforming Markets

Mixed Views on Non-QM Lending

Small banks reduced the share of non-qualified mortgages they originated in 2016, but some nonbanks are expected to significantly increase their activity in the sector. Non-QMs accounted for 9.0 percent of the mortgages originated by participants in the American Bankers Association’s annual real-estate lending survey. Some 159 banks were surveyed by the trade group and about 76.0 percent of the participating institutions had assets of less than $1.0 billion. In 2015 ...

April 14, 2017 - Inside Nonconforming Markets

Chase Pushes for More Non-Agency Lending

Private capital needs to return to the mortgage market to make the market less dependent on taxpayers, according to JPMorgan Chase. The company dedicated portions of its latest annual report to call for a number of changes that could increase non-agency lending. According to Chase, a “healthy” non-agency mortgage-backed security market hasn’t resumed eight years after the financial crisis because housing finance reform and other securitization standards ...

April 7, 2017 - Inside Mortgage Trends

Bank Repurchases Tumbled in 2016

Banks and thrifts repurchased $813.1 million of single-family mortgages during the fourth quarter of 2016, an 8.2 percent decline from the previous period, according to an Inside Mortgage Trends analysis of call-report data. It wasn’t the lowest quarterly repurchase volume on record – that distinction belongs to the fourth quarter of 2015 at $735.6 million. But the final three months of 2016 brought the full-year total to $3.27 billion, and that was the lowest ... [Includes one data chart]

March 31, 2017 - Inside Nonconforming Markets

Lenders Divided on Portfolio QM Proposal

A proposal in Congress to define all mortgages held in portfolio as qualified mortgages has some bipartisan support, but lenders are divided on the matter. “I caution the use of portfolios to add loans that are not standard,” said David Motley, president of Colonial Companies and chairman-elect of the Mortgage Bankers Association. “The rules of the qualified mortgage, I believe, should be the same for everybody.” He made the remarks this week at a hearing by the ...

March 30, 2017 - Inside Mortgage Finance

Top Lenders, Banks Reclaim Some Market Share In 4Q16, Community Banks Major Players in Retail

The top tier of mortgage producers gained some market share in 2016, but call-report data show that community banks continued to play a huge role in the primary market, according to a new analysis and ranking by Inside Mortgage Finance. The top 100 lenders produced a hefty $1.622 trillion in first-lien mortgages last year, including their correspondent and wholesale-broker programs. Although their production faltered by 2.5 percent in the fourth quarter, full-year volume was up 18.2 percent from 2015. Banks, thrifts and credit unions ended...[Includes two data tables]

March 24, 2017 - Inside MBS & ABS

Banks to Settle Legacy MBS Case; Deutsche Bank’s Class Bid Rejected; Court Favors Collateral Manager

Wells Fargo, Deutsche Bank and the Royal Bank of Scotland have agreed to pay investors $165 million to resolve allegations of misrepresenting the quality of mortgage loans underlying securities issued by now-defunct subprime lender NovaStar Mortgage. The agreement was announced last week subject to approval by Judge Deborah Batts of the U.S. District Court for the Second District of New York, according to a report by Reuters. At issue is $7.7 billion in residential MBS delivered into various trusts and sold to investors, including pension funds, prior to the housing crash. A multi-employer union pension plan led by the New Jersey Carpenters Health Fund filed...

March 17, 2017 - Inside Nonconforming Markets

Bank Holdings of First Liens Increase in 4Q16

Bank and thrift holdings of first-lien portfolios continued to increase at the end of 2016, according to an Inside Nonconforming Markets analysis of bank and thrift call reports. Banks and thrifts held $1.93 trillion in first liens at the end of the year, up 0.4 percent from the third quarter of 2016 and up 3.4 percent from the end of 2015. New additions to the portfolios are generally jumbo mortgages along with some loans eligible for sale to the government- ... [Includes one data chart]

March 17, 2017 - Inside Nonconforming Markets

BofA Jumbos Going into MBS

For the second time in five months, mortgages aggregated by Bank of America will be included in a jumbo mortgage-backed security. In both instances, BofA has sold loans to New Penn Financial, with an affiliate of New Penn issuing the MBS. The $280.38 million Shellpoint Co-Originator Trust 2017-1 is scheduled to close at the end of this month. Mortgages aggregated by BofA account for 98.7 percent of the dollar volume of the MBS, according to presale reports by Kroll Bond Rating Agency and ...

March 16, 2017 - Inside Mortgage Finance

Commercial Banks Continue Servicing Pullback, Thrifts and Credit Unions Pick Up Some Slack

The volume of home mortgages outstanding continued to grow during the final three months of 2016, no thanks to the commercial banking industry. Recently released data from the Federal Reserve show $10.266 trillion of mortgage debt outstanding at the end of last year. That was up 0.7 percent for the quarter and reflected a 2.3 percent gain for the full year. The market still has a long way to go to catch up to the $11.240 trillion of mortgage debt outstanding at the end of 2007, but growth has been steady since bottoming out in mid-2014. The agency market continued...[Includes two data tables]

March 10, 2017 - Inside Mortgage Trends

Pushy Sales Tactics Could Backfire

Retail banks and mortgage lenders have enjoyed a pretty good run of consistently improving customer satisfaction and loyalty over the last five years, but they could blow it if they’re not careful by exerting excessive sales pressure on borrowers, a new report by market research company J.D. Power suggests. In response to the recent fraudulent account creation scandal at Wells Fargo, J.D. Power decided to take a closer look at how this development affected retail bank customers across the U.S. and to get a better sense of the phenomenon of cross-selling. The survey found...

March 10, 2017 - Inside Mortgage Trends

Despite Hefty Markup in MSR Values, Banks Continue to Dump Servicing

The banking industry continued to backpedal away from the business of servicing home mortgages for other investors during 2016, according to an exclusive new Inside Mortgage Trends analysis of call-report data. Commercial banks and savings institutions serviced $3.808 trillion of home mortgages for other investors at the end of 2016, most of which are connected to loans in mortgage-backed securities trusts. That was down $71.6 billion from the end of the third quarter, or 1.8 percent. Over the past two years, banks reduced...[Includes one data table]


With the spring homebuying season in full swing, what percentage of your March 2017 application volume has been for “purchase” loans?

75% or higher
50% to 74%
30% to 49%
Under 30%

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