Bank Profitability

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

June 26, 2015 - Inside Nonconforming Markets

Bank Holdings of Non-Agency MBS Dwindle

With issuance of non-agency mortgage-backed securities unable to keep pace with disappearing volume from vintage deals, bank and thrift holdings of non-agency MBS continue to decline. The holdings were down somewhat more than usual in the first quarter of 2015, suggesting sales by some banks. Banks and thrifts held $111.48 billion in non-agency MBS as of the end of the first quarter of 2015, according to the Inside Mortgage Finance Bank Mortgage Database. The holdings declined by 16.1 percent compared with the first quarter of 2014, including an 11.0 percent decline compared with the fourth quarter of 2014 ... [Includes one data table.]


June 25, 2015 - Inside Mortgage Finance

Nonbanks Continued to Build Market Share in Early 2015 Mortgage Originations, More Deconsolidation Seen

Nonbank mortgage lenders accounted for 43.3 percent of the total originations produced by the top 100 lenders during the first quarter of 2015, according to a new Inside Mortgage Finance ranking and analysis. That was up from a 42.7 percent share of production by the top 100 in the fourth quarter of 2014 and a 38.0 percent share a year ago. The 48 nonbanks that ranked in the top 100 originators had a combined $133.35 billion in first-quarter production, up 13.0 percent from the fourth quarter. Banks and thrifts still play...[Includes one data table]


June 12, 2015 - Inside Nonconforming Markets

ARM Lending Declines in First Quarter

Originations of adjustable-rate mortgages declined in the first quarter of 2015 as interest rate trends continued to incentivize many borrowers to select fixed-rate mortgages. Some $41.0 billion in ARMs were originated in the first three months of 2015, according to estimates by Inside Nonconforming Markets, down 10.9 percent from the previous quarter and down 6.8 percent from the first quarter of 2014. Many of the mortgages are ... [Includes one data chart]


June 12, 2015 - Inside Nonconforming Markets

Bank Mortgage Holdings Up Sharply In 2015, Led By Jumbo Home Loans

Originations of jumbo mortgages along with retention of some conforming loans helped bank and thrift holdings of first liens grow in the first quarter of 2015, according to a new ranking and analysis by Inside Nonconforming Markets. Banks and thrifts held $1.78 trillion in first liens in portfolio at the end of the quarter, up 0.9 percent compared with the fourth quarter of 2014 and a 2.4 percent increase compared with the first quarter of last year. The portfolios ... [Includes one data chart]


June 12, 2015 - Inside MBS & ABS

Court Departs from Long-Held Federal Preemption for Nonbanks, Prompting Concern in Securitization Industry

Securitization industry participants are concerned about a recent ruling in a federal appeals court that overturned longstanding preemption certain nonbanks have enjoyed from state laws, including standards for debt collection. The ruling in late May by the Second Circuit Court of Appeals in the case of Madden v. Midland Funding could pose “significant implications for the securitization industry,” according to the Structured Finance Industry Group. The case involves...


June 11, 2015 - Inside Mortgage Finance

Home-Equity Lending Tapered Off in Early 2015, But New HELOC Commitments Tick Higher

Americans were too busy refinancing and shoveling snow to get new home-equity loans during the first quarter of 2015, a new Inside Mortgage Finance analysis reveals. Mortgage lenders did an estimated $19.5 billion of home-equity lending during the first three months of 2015, based on new commitments for home-equity lines of credit – by far the most active part of the HEL market – plus originations of closed-end seconds. That was down 7.1 percent from the fourth quarter of last year. Despite the slowdown in the first quarter, home-equity production was...[Includes three data tables]


June 5, 2015 - Inside Mortgage Trends

Banks Continue Retreat From MSR

Commercial banks and thrifts – most of them – continued their years-long retreat from the mortgage servicing rights market during the first quarter of 2015, according to a new Inside Mortgage Trends analysis of call reports. Banks serviced a total of $4.282 trillion of home mortgages for other investors as of the end of March. That was down $134.2 billion, or 3.0 percent, from the fourth quarter. Compared to a year ago, bank mortgage servicing ... [Includes one data chart]


May 29, 2015 - Inside FHA/VA Lending

Court Denies Relator Standing in Whistleblower Suit Against Bank

Whistleblowers that bring a False Claim Act claim against an FHA lender based on previous publicly disclosed information have no standing, according to a recent federal district court ruling. Judge Jack Zouhary of the U.S. District Court for the Northern District of Ohio dismissed an FCA lawsuit against U.S. Bank because the whistleblower had neither direct nor independent knowledge of the bank’s alleged false claims – two basic requirements for standing in a whistleblower suit. The Advocates for Basic Legal Equality (ABLE), an Ohio-based legal aid group, filed an FCA lawsuit against U.S. Bank for allegedly disregarding and violating FHA regulations. The group accused the bank of filing false claims and collecting payments without evaluating loss mitigation alternatives before foreclosing on properties. According to ABLE, it had consulted with “many people,” whose mortgage loans were ...


May 29, 2015 - Inside Nonconforming Markets

Some Agreement in Congress on Portfolio QMs

A broad regulatory relief bill pushed by Sen. Richard Shelby, R-AL, passed the Senate Committee on Banking, Housing, and Urban Affairs last week on a 12-10 party-line vote. While Democrats oppose portions of the bill, they are seeking changes to standards for qualified mortgages similar to those proposed by Shelby. The Financial Regulatory Improvement Act of 2015 would establish a qualified-mortgage safe harbor for certain loans held in portfolio. The main difference between ...


May 29, 2015 - Inside Nonconforming Markets

Bank Mortgage Operations Holding Up in ATR Era

Since the Consumer Financial Protection Bureau’s ability-to-repay rule was implemented in January 2014, bank mortgage operations have grown as a whole, according to a new analysis of call-report data by Inside Nonconforming Markets. Retail originations, mortgage banking income and portfolio holdings at banks and thrifts have all increased since the first quarter of 2014, suggesting the ATR rule has done little to crimp mortgage activity by banks. Banks had $93.06 billion in retail originations ...


May 22, 2015 - Inside Mortgage Trends

Banks Report Solid Increase in Mortgage Banking Income in First Quarter 2015

Commercial banks and thrifts earned $3.99 billion from their mortgage-banking operations during the first quarter of 2015, according to a new ranking and analysis by Inside Mortgage Trends. Mortgage-banking income was up 12.7 percent from the previous quarter and 19.0 percent ahead of the pace set in the first three months of 2014. Early 2015 was no record-setter, by any means, but profits were well below the levels reached in the middle of last year. The call-report data do not separate...[Includes one data table]


May 22, 2015 - Inside The GSEs

FHLB Combined Net Income Rose Due to Higher Litigation Gains

The Federal Home Loan Bank system earned $1.015 billion in the first quarter of 2015, according to figures compiled by the system’s Office of Finance, an 82.6 percent increase when compared to the same quarter in 2014. The sharp increase was primarily the result of higher gains on litigation settlements, according to the Office of Finance. Litigation settlements accounted for $480 million in gains for the three months ending on March 31. The OF said the bulk of it was “driven by the FHLBank of San Francisco’s $450 million settlement of certain claims arising from investments in private-label mortgage-backed securities.” Total FHLBank assets for the first three months of the year were down at $879.9 billion, a 3.7 percent decrease from...


Poll

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11 to 30 percent
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