Bank Profitability

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

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 ...

February 3, 2017 - Inside Nonconforming Markets

Jumbo Originations Fluctuate at Some Banks; Up at First Republic and Flagstar

Jumbo production increased significantly for some lenders during the fourth quarter and declined for others, according to a preliminary analysis of jumbo originations. Among four banks that publicly disclose their jumbo volume, First Republic Bank and Flagstar Bancorp posted increases compared with both the third quarter of 2016 and the fourth quarter of 2015. BofI Holding and EverBank Financial reported declines in jumbo production. First Republic originated $3.06 billion of single-family ...

February 2, 2017 - Inside Mortgage Finance

Nonbank Share of Top 50 Mortgage Servicers Up Sharply in 4Q16, Plenty of Upheaval Ahead

Nonbanks continued to grab a larger share of the mortgage servicing business during the fourth quarter of 2016, and the rapid emergence of investor servicers – firms that buy mortgage-servicing rights while tapping other firms to actually administer the pools – promises to bring more change. A new Inside Mortgage Finance ranking and analysis shows that nonbanks that ranked among the top 50 servicers increased their holdings by 6.9 percent during the fourth quarter. Depository institutions among the top 50 servicers reduced their holdings by 1.2 percent during the same period. With Citi, the sixth-largest servicer at the end of 2016, now in the process of selling a large chunk of its MSR assets – in some cases to investors that will use subservicers – the demographics of the industry will change...[Includes two data tables]

January 26, 2017 - Inside Mortgage Finance

JPMorgan Chase Agrees to Pay $53 Million to DOJ to Resolve Allegations of Lending Bias Against Minorities

The U.S. Attorney for the Southern District of New York has announced a $53 million settlement agreement with JPMorgan Chase Bank to resolve alleged discriminatory lending through its wholesale broker channel in violation of the Equal Credit Opportunity Act and the Fair Housing Act. Filed last week in Manhattan federal court, the U.S. Attorney’s complaint accused Chase of improperly steering African-American and Hispanic borrowers into certain loan products and charging them higher interest rates and fees than comparable white borrowers between 2006 and 2009. During the period, approximately 360,000 brokered mortgage loans were delivered...

January 20, 2017 - Inside Nonconforming Markets

Banks Reiterate Calls for Portfolio QM Designation

With President-elect Donald Trump set to take office and Republicans in control of Congress, trade groups representing banks reiterated calls for revisions to standards for qualified mortgages. Banks are pushing for QM status to be applied to any mortgage held in portfolio, even if the loans have characteristics that would otherwise make them non-QMs subject to greater liability. In a letter this month to leaders of Congress, Rob Nichols, president and CEO of the American Bankers Association ...

January 12, 2017 - Inside Mortgage Finance

Banks and Nonbanks Expected to Make Handsome MSR Mark-ups for 4Q16. But What Does it Mean for Sales?

Banks and nonbanks alike are expected to unveil sizable mark-ups on the asset value of their mortgage servicing rights for the fourth quarter, with the general consensus being that increases will range from 20 to 25 basis points. One servicing advisor, requesting his name not be used, said he has some clients that will book gains of 30 to 35 bps, though he indicated this won’t be the norm. “In general, it’s going to be a huge move,” he said. This source made...

January 6, 2017 - Inside FHA/VA Lending

Ginnie MBS Program Set New Records in 2016, VA Soared

Ginnie Mae guaranteed a total of $507.46 billion of single-family mortgage-backed securities in 2016, its biggest annual volume ever, according to a new analysis and ranking by Inside FHA/VA Lending. That was up 16.4 percent from the agency’s previous record of $435.80 billion set in 2015. (Those figures include MBS backed by FHA home-equity conversion mortgages, which are not included in the table below or in the rankings on pages 3-5.) In 2016, Ginnie guaranteed $497.03 billion of MBS backed by traditional forward mortgages, also a record, which was up 16.9 percent from the previous year. The biggest factor in last year’s record-setting production was the boom in VA lending, particularly VA refinance loans. Issuers securitized a record $203.03 billion of VA loans last year, up 33.0 percent from the 2015 total. Some 54.3 percent of those loans were refinance transactions. Total VA refi loan ... [4 charts]

January 6, 2017 - Inside Nonconforming Markets

Bank First-Lien Holdings Up Again in 3Q16

The portfolio holdings of first-lien residential mortgages at banks and thrifts continued to increase during the third quarter of 2016, according to a ranking and analysis by Inside Nonconforming Markets. Banks and thrifts held $1.93 trillion in first liens at Sept. 30, up 1.6 percent from the previous quarter and a 3.9 percent increase compared with the third quarter of 2015. Originations and acquisitions of mortgages – both jumbos and non-jumbos ... [Includes one data chart]


With rates higher this year, there has been talk of lenders liberalizing their underwriting standards in an effort to increase volume and make up for lower refis.

Do you think your shop will loosen standards over the coming three months?

Yes, but not by much.
Yes, by a lot.
Yes and, heck, we may even do non-QM lending.
No, not at all.
No and we may even tighten credit.

vote to see results