Bank Profitability

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

September 23, 2016 - Inside FHA/VA Lending

VA Shares Pointers to Help Avoid Delays in Processing COE Requests

The Department of Veterans Affairs has made recommendations to VA lenders and borrowers calling in with questions and problems at VA regional centers to avoid long wait times and have their concerns resolved as quickly as possible. In a recent memo to lenders, the VA Loan Guaranty Service is reporting that many of its regional loan centers (RLC) are being swamped with calls due to record increases in VA originations in recent months. While this suggests that more veterans are using their housing loan benefit than ever before, the large volume of calls to VA has caused long hold times for callers and delayed processing of borrower certificates of eligibility (COE). To cut down on the waiting time, the VA urged lenders and borrowers to consider several things before making the call. First, do not call to check on the status of a COE request if there is no urgent need, like an ...

September 23, 2016 - Inside FHA/VA Lending

HUD Poised to Collect Huge FCA Settlement Funds from Lenders

The Department of Housing and Urban Development is set to receive more than $140 million in settlements with three individual lenders in connection with defective loans they originated with FHA insurance. Freedom Mortgage Corp., M&T Bank, and Land Home Financial Services all reached separate agreements this year with the Department of Justice on behalf of the HUD Inspector General to resolve the allegations. On April 15, Freedom agreed to pay $113 million, in response to charges that “it engaged in certain conduct in connection with its origination, underwriting, property appraisal and quality of certain single-family mortgages insured by FHA.” The disputed forward loans were insured by FHA between Jan. 1, 2006, and Dec. 31, 2011, which resulted in claims submitted to HUD on or before June 15, 2015. HUD incurred substantial losses when it paid claims on the ...

September 16, 2016 - Inside Mortgage Trends

Bank Repurchases Bounce Higher in 2Q16

Mortgage repurchase activity by banks and thrifts took an unexpected turn higher during the second quarter, according to a new Inside Mortgage Trends analysis of call reports. Call reports show that banks and thrifts repurchased $804.1 million of single-family mortgages, or otherwise indemnified a buyer, during the second quarter. That was up $40.0 million or 5.2 percent from the first three months of the year and marked the second straight quarterly ... [Includes one data chart]

September 9, 2016 - Inside Nonconforming Markets

Bank Retained-Mortgage Portfolios Keep Growing, Few Jumbos Going in MBS

Bank and thrift holdings of first-lien mortgages increased by 2.4 percent in the second quarter of 2016, according to an Inside Nonconforming Markets analysis of bank and thrift call reports. The holdings were boosted by jumbo mortgages, with few of the loans being delivered into mortgage-backed securities. Banks and thrifts held $1.90 trillion in first liens as of the end of June, up $44.22 billion from the end of March. Some $101.00 billion in jumbos were ... [Includes one data chart]

September 8, 2016 - Inside Mortgage Finance

Warehouse Commitments Inched Up in 2Q16 But Major Gains Were Had in Lines Drawn

Mortgage warehouse providers ended the second quarter with $55.0 billion of commitments on their books, a 10.0 percent sequential improvement in a red-hot origination market, according to survey figures compiled by Inside Mortgage Finance. Compared to the same period a year earlier, commitment volumes were up 12.2 percent. But the real story was in lines drawn and “average outstandings,” which rose substantially. At Southwest Bank, for example, its commitment level increased...[Includes one data table]

September 2, 2016 - Inside Mortgage Trends

Bank Flight From MSR Continued in 2Q16

Commercial banks and savings institutions are continuing their years-long flight from the volatile business of holding mortgage-servicing rights on their balance sheets, according to a new Inside Mortgage Trends analysis of call report data. At the end of June, banks and thrifts serviced $3.916 trillion of single-family mortgages for other investors, usually mortgage-backed securities trusts. That was down 2.1 percent from the previous quarter and ... [Includes one data chart]

August 26, 2016 - Inside Nonconforming Markets

Jumbo Originations Increase Sharply In 2Q16 as Big Banks Battle for Loans

Strong competition among big banks helped increase originations of jumbo mortgages during the second quarter, according to a new ranking and analysis by Inside Nonconforming Markets. An estimated $101.0 billion in jumbos were originated in the second quarter, up 31.2 percent from the previous quarter. Through the first half of 2016, an estimated $178.0 billion in jumbos were originated, a 7.9 percent increase from the first half of 2015. Jumbo mortgages ... [Includes one data chart]

August 25, 2016 - Inside Mortgage Finance

Subservicer Rushmore Loan Management Ready to Launch Consumer-Direct Channel

Rushmore Loan Management Services, Irvine, CA – a subservicing specialist – plans to enter the origination market early next month, a rarity for firms whose forte is processing loans for others. Company CEO Terry Smith told Inside Mortgage Finance that the nonbank’s direct-to-consumer arm is scheduled to begin funding loans on Sept. 1. “Our focus will be on originating loans – and servicing those loans,” Smith said. He also noted...

August 19, 2016 - Inside Mortgage Trends

Bank Call Reports Show Modest Increase In Mortgage Banking Income for 2Q16

Commercial banks and savings institutions reported a combined $3.581 billion in mortgage-banking income during the second quarter of 2016, according to a new Inside Mortgage Trends analysis of call reports. That was up 8.3 percent from the $3.307 billion the industry reported for the first quarter of 2016. For the first six months of the year, banks reported $6.888 billion in mortgage-banking profits, down 31.7 percent from the same period in ... [Includes one data chart]


After the November elections, how long will it take for a new Congress and White House to pass GSE reform legislation?

I’m confident a bill will be passed the first year.
2 to 3 years. GSE reform is complicated.
Sadly it won’t happen in a Clinton or Trump first term.
Not in my lifetime.

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