Bank Profitability

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

October 7, 2016 - Inside FHA/VA Lending

Ginnie Mae Crushed Single Family MBS Issuance Records in 3Q16

Ginnie Mae rode a surging purchase-mortgage market and heavy refinance activity to new production records during the third quarter of 2016. The agency issued a whopping $145.14 billion of single-family mortgage-backed securities during the third quarter, according to an Inside FHA/VA Lending analysis of MBS disclosures. That figure is based on pool-level disclosures that reveal exact principal balance amounts and it includes securities backed by FHA home-equity conversion mortgages. The data in the table below are based on truncated loan-level disclosures and do not include HECM activity. New Ginnie MBS issuance in the third quarter was up 15.7 percent from the previous quarter. Ginnie MBS production set three consecutive monthly records during the third quarter, culminating in a huge $52.46 billion month in September. Purchase-mortgage activity was the key driver, but the ... [ 4 charts ]

October 7, 2016 - Inside Nonconforming Markets

Portfolio Retention of ARMs Increased in 2Q16

The share of adjustable-rate mortgages held in portfolio hit an exceptionally high level in the second quarter of 2016, according to a new analysis by Inside Nonconforming Markets. An estimated $53.00 billion in ARMs were originated in the second quarter of 2016 and $4.69 billion in ARMs were included in mortgage-backed securities issued during the period. The ARM securitization rate in the second quarter was 8.8 percent, down from 13.9 percent ... [Includes two data charts]

October 7, 2016 - Inside MBS & ABS

FDIC Suits Against MBS Trustees Dismissed; RBS Settles with NCUA; DOJ, Deutsche Bank Negotiate

A Manhattan district court judge last week dismissed lawsuits brought by the Federal Deposit Insurance Corp. against three large banks, saying the agency no longer has standing to sue after it sold the defective mortgages through a re-securitization transaction. Judge Andrew Carter of the U.S. District Court for the Southern District of New York threw out the government’s suits against Citigroup, Bank of New York Mellon and U.S. Bancorp, which accused the banks of failing as trustees to ensure the quality of $2.7 billion in MBS purchased by the failed Texas-based Guaranty Bank. Reuters was the first to report Carter’s decision. Guaranty went...

October 6, 2016 - Inside Mortgage Finance

HMDA Report Shows Huge Jump in Refi Business in 2015, Growing Government Role in Purchase Market

Home Mortgage Disclosure Act data released last week show a somewhat more efficient mortgage market in 2015 as fewer loan applications were declined and more turned into originated loans. Lenders processed $2.576 trillion in mortgage applications filed in 2015, converting them into $1.651 trillion in purchase and refinance originations, a 32.9 percent increase from the previous year. Some 56.5 percent of loan apps turned into closed loans, up from 53.8 percent in 2014, and the overall denial rate fell 2.9 points to 20.1 percent. Most of last year’s origination surge came...[Includes one data table]

September 30, 2016 - Inside Mortgage Trends

Bank Loan Sales Spike in 2Q16

Banks and savings institutions sold $174.7 billion of single-family mortgages as part of their mortgage-banking operations during the second quarter of 2016, according to a new Inside Mortgage Trends analysis of call-report data. That represented a 20.2 percent increase from the first three months of the year. It brought year-to-date loan sales to $320.0 billion, still 12.2 percent short of the total for the first half of 2015. Banks ended June with ... [Includes one data chart]

September 29, 2016 - Inside Mortgage Finance

MSR Sellers Eager to Sell their Product but Buyers Interested Only in Issuance, not Servicing

The motivations of buyers and sellers in the mortgage servicing market appear to be at odds, and sellers are hoping for some sort of buyer conversion to light up the market and get more deals. At the Ginnie Mae Summit last week, panelist Michael Ehrlich, senior mortgage specialist at Thomson Reuters, indicated that sellers are itching to see more mortgage servicing rights deals but there are not too many buyers lining up. “The demand from sellers to sell is...

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]


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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