Bank Profitability

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

December 19, 2014 - Inside Nonconforming Markets

Banks Increase Holdings of First Liens

Bank and thrift holdings of first-lien mortgages increased in the third quarter of 2014 compared with the third quarter of 2013, according to a new ranking and analysis by Inside Nonconforming Markets. Banks and thrifts held $1.76 trillion in first liens as of the end of the third quarter of 2014, up 0.4 percent compared with the same period last year. The growth was driven by jumbo mortgages. On a quarterly basis, portfolio runoff and loan sales slightly outpaced ... [Includes one data chart]


December 19, 2014 - Inside MBS & ABS

REITs that Focused on Residential MBS See Promise in Commercial MBS Market

Two real estate investment trusts that have focused their efforts on residential MBS recently announced plans to enter the commercial MBS market. The moves come as issuance of residential MBS has been subdued since the financial crisis while issuance of commercial MBS activity has been soaring in recent years. PennyMac Financial Services announced this month that it formed PennyMac Commercial Real Estate Finance. The business will focus on loans that finance multifamily and other commercial real estate with a typical value of under $10 million. PennyMac said it plans for its REIT, PennyMac Mortgage Investment Trust, to acquire and securitize the commercial mortgages. “The opportunity in this market is...


December 19, 2014 - Inside MBS & ABS

In a Stalled MBS Market, Most of the Heavy Hitters Increased Their Holdings in 3Q14

The outstanding supply of agency single-family MBS continued to grow at a subdued pace during the third quarter of 2014, and the biggest investor classes did most of the heavy lifting funding the market, according to a new Inside MBS & ABS analysis. On the supply side, there were $5.632 trillion of single-family MBS guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae outstanding at the end of September. That was up just 0.4 percent from the previous quarter but had enough growth rings to show a 1.2 percent gain from a year ago. As has been the case for the past few years, the Ginnie MBS market grew...[Includes two data chart]


December 18, 2014 - Inside Mortgage Finance

Home-Equity Production Increased in 3Q14, But Not Enough to Offset Ongoing Decline in HEL Outstanding

Home-equity lending continued to grow during the third quarter of 2014 – in fact, it was the fastest-growing segment of the mortgage market – but depository institutions reported further declines in the unpaid balances of these assets on their balance sheets. Lenders funded an estimated $20 billion of new home-equity lines of credit during the third quarter, up 17.6 percent from the previous three-month period. That compared to a 9.8 percent increase in total mortgage originations during the period, and it was the best quarterly HEL production figure in five years, according to Inside Mortgage Finance estimates. Still, the supply of home-equity loans outstanding fell...[Includes three data charts]


December 12, 2014 - Inside Mortgage Trends

Bank Repurchases Tumble to Post-Crash Low in 3Q14; Is Industry Over-Reserved?

Commercial banks and thrifts reported a seventh consecutive quarterly decline in mortgage purchases and indemnifications during the third quarter but still hold hefty amounts in reserves against future buybacks, according to a new analysis by Inside Mortgage Trends. Banks and thrifts reported $998.8 million in mortgage repurchases and indemnifications during the third quarter, down 1.3 percent from the second. It was also the lowest quarterly repurchase figure reported since ...


December 5, 2014 - Inside Nonconforming Markets

Goldman Returns to Non-Agency MBS Market

Goldman Sachs teamed with EverBank Financial to issue a unique jumbo mortgage-backed security last week, its first jumbo MBS since the financial crisis. The $282.80 million GS Mortgage-Backed Securities Trust 2014-EB1 received AAA ratings with credit enhancement of 8.35 percent on the senior tranche. All of the loans in the deal are hybrid adjustable-rate mortgages originated by EverBank. Some 7.9 percent of the ARMs have a 10-year interest-only period. The deal marked a shift ...


December 5, 2014 - Inside Nonconforming Markets

Jumbo Originations Rose in 3Q14; Bank Demand Remains Strong

Originations of jumbo mortgages increased in the third quarter of 2014 compared with the previous quarter, according to a new ranking and analysis by Inside Mortgage Finance, an affiliated publication. Big banks continue to have a strong appetite for jumbos, prompting some smaller banks to sell jumbos to them and keeping some nonbanks out of the jumbo mortgage-backed security market altogether. An estimated $65.0 billion in jumbos were originated in the third quarter of 2014 ... [Includes one data chart]


Poll

What will Fannie Mae’s and Freddie Mac’s new 97 LTV programs mean for your business?

It will give our business a big boost as there is a lot of pent up demand for the product.
It will have only a minor impact on our overall business as we already are doing high LTV business through FHA and some of our high LTV FHA business is likely to shift to Fannie and Freddie.
It won’t have any impact on our business as we plan to steer clear of all high LTV business – particularly in the GSE market.

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