Bank Profitability

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

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]

February 23, 2017 - Inside Mortgage Finance

Warehouse Finance Sector Had a Good Year in 2016, But Storm Clouds Hover and Usage Rates May Dive

Warehouse providers ended 2016 with roughly $62.0 billion of commitments on their books, a 21.6 percent improvement from the same period a year earlier, according to new survey figures compiled by Inside Mortgage Finance. For the most part, warehouse finance continued to be a healthy business for the megabanks and regional banks that play in the sector – especially with nonbank originators stealing market share away from many of the institutions they’re receiving lines of credit from. Few warehouse managers interviewed by this publication cited...[Includes one data table]

February 17, 2017 - Inside Nonconforming Markets

Revised CHOICE Act Aims to Limit CFPB

A revised version of the Financial CHOICE Act could make changes to the Consumer Financial Protection Bureau that are so significant that other provisions in the bill aiming to loosen standards for qualified mortgages might not be necessary. Rep. Jeb Hensarling, R-TX, chairman of the House Financial Services Committee, introduced HR 5983, the Financial CHOICE Act, in September and the committee approved the bill largely on a party-line vote that month. The bill covered a wide ...

February 17, 2017 - Inside Nonconforming Markets

Chase Changes Strategy with Latest MBS

JPMorgan Chase is preparing to issue another large non-agency mortgage-backed security, but the deal includes some significant differences compared with the two large portfolio risk-transfer MBS the bank issued last year. The biggest change is that Chase appears to be planning to sell most of the MBS to investors. On the two large portfolio risk-transfer MBS that Chase issued in 2016, the bank retained about 90.0 percent of the issuance. At the time, Chase officials cited ...


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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