Bank Profitability

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

February 12, 2016 - Inside Nonconforming Markets

Jumbo Demand Declines, Underwriting to Loosen

Borrower demand for jumbo mortgages declined somewhat in the fourth quarter of 2015 compared with the previous quarter, and banks plan on loosening underwriting standards for the loans, according to the Federal Reserve’s senior loan officer opinion survey. Industry participants stress that underwriting standards for jumbos remain strong, with poor performance unlikely. Senior LOs were asked to evaluate demand for purchase mortgages in the fourth quarter of 2015 ...


February 5, 2016 - Inside Mortgage Trends

Banks Report Decline in Mortgage Banking Income in 4Q15, Year Ends Up From 2014

Mortgage banking income generally declined for commercial banks and thrifts in the fourth quarter, although 2015 was generally more profitable than the previous year, according to a new Inside Mortgage Trends analysis of earnings releases. A diverse group of 25 banks reported a total of $3.046 billion in mortgage-banking income for the fourth quarter. That was down 14.8 percent from the previous three-month period, and it marked the group’s lowest ... [Includes one data chart]


January 29, 2016 - Inside Nonconforming Markets

Bank Holdings of Non-Agency MBS Fall

The volume of non-agency mortgage-backed securities held by banks and thrifts has declined much more quickly than the amount of total non-agency MBS outstanding. Banks and thrifts held a total of $96.76 billion in non-agency MBS as of the end of the third quarter of 2015, down 28.4 percent compared with the end of the third quarter of 2014, according to a new analysis and ranking from the Inside Mortgage Finance Bank Mortgage Database. In that span ... [Includes one data chart]


January 15, 2016 - Inside FHA/VA Lending

TRID Compliance Excluded from FHA Post-Endorsement Reviews

FHA lenders are uneasy over whether issues raised by the Consumer Financial Protection Bureau’s new integrated disclosure rules could affect FHA lending. Although the issues cited by lenders are not FHA issues per se, these lenders are concerned that such uncertainties may cause problems for their FHA business, according to mortgage industry consultant Brian Chappelle, a principal at Potomac Partners. For example if a lender cures a mistake and the cure results in a reimbursement of, say, $100 to the borrower at closing, would that be considered a violation of the Department of Housing and Urban Development’s minimum 3.5 percent cash-investment requirement for FHA loans. “I don’t think it is a violation, but lenders are worried about how HUD might interpret it,” said Chappelle. “It is well after closing and it is obviously not a gift given to the borrower. It is ...


January 15, 2016 - Inside FHA/VA Lending

Ginnie Mae Issuance Hits New High In Securitized VA, FHA, RHS Loans

Issuers of Ginnie Mae mortgage-backed securities pushed a record $435.80 billion of government-insured loans through the program during 2015, according to a new Inside FHA/VA Lending analysis and ranking. Last year’s total Ginnie MBS issuance topped the previous record of $429.50 billion issued during 2009. The $435.80 billion total for 2015 includes securitization of FHA home-equity conversion mortgages and other single-family loans guaranteed by FHA, the VA, and the Department of Agriculture rural housing program from Ginnie pool-level MBS data that are not truncated. Production in 2015 hit its high-water mark in the third quarter with $128.23 billion in issuance, and then fell 18.0 percent in the final three months of the year. Purchase mortgages continued to account for most Ginnie business in 2015, 58.0 percent of the agency’s forward-mortgage securitizations. But a huge factor in the ... [ Charts ]


January 15, 2016 - Inside Nonconforming Markets

Interest Rates Could Prompt MBS from Banks

The non-agency mortgage-backed security market could be revived this year by economic factors rather than efforts by Congress or industry participants, according to analysts. The non-agency share of mortgage originations has been relatively strong in recent years, but the loans were largely held in bank portfolios instead of included in non-agency MBS. Legislative reform of the government-sponsored enterprises and potential incentives for non-agency MBS issuance look ...


Poll

A lot has been written lately regarding loan closing delays tied to the new TRID rule. What’s been the average delay at your lending shop, if at all? (Report in business days, not calendar.)

TRID has caused no delays whatsoever because we were prepared.

30%

1 to 4 days.

27%

5 to 10 days.

13%

11 to 15 days. It’s been a nightmare.

11%

We’re too embarrassed to tell you.

20%

Housing Pulse