Bank Profitability

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

July 18, 2014 - Inside FHA Lending

VA Clarifies Impact of Same-Sex Marriage Policy

Same-sex couples are entitled to veteran benefits, including home loan guaranty, if their marriage is recognized by the state where they live or where they lived when they filed a claim for benefits – and not where the marriage took place.The VA made the clarification in the wake of guidance the agency issued regarding the benefits and services same-sex married couples are entitled to under current laws and regulation. On June 26, 2013, the U.S. Supreme Court, in United States v. Windsor, struck down Section 3 of the Defense of Marriage Act (DOMA), which governs the definitions of “marriage” and “spouse” for all federal agencies, because it was unconstitutional. The court held that the provision deprives a person of the right to equal liberty, which is protected by the due process clause of the Fifth Amendment. Prior to the SCOTUS opinion, DOMA defined “marriage” as a ...


July 18, 2014 - Inside FHA Lending

Infractions that Could Trigger MRB Enforcement

One deficiency commonly noted in cases heard by the Department of Housing and Urban Development’s Mortgagee Review Board is failure by FHA lenders and servicers to implement and maintain a quality control (QC) plan. FHA’s focus on quality control has increased over the last couple of years as the agency strives to correct underwriting flaws that have contributed to the massive losses and severe depletion of the Mutual Mortgage Insurance Fund. After years of guiding and helping clients comply and cope with FHA regulations, requirements and enforcement actions, the Collingwood Group reports that a common QC-related mistake among FHA lenders is failure to document steps taken to correct deficiencies – or to take any corrective action at all. Tied to this issue is ...


July 18, 2014 - Inside FHA Lending

JPMorgan Chief Seeks FHA Safe Harbor for Bank

JPMorgan Chase chief executive Jaime Dimon this week warned that the investment bank may rethink its FHA business without some type of safe harbor to shield it from potential future liabilities arising from the Financial Institutions Reform, Recovery and Enforcement Act and the False Claims Act. In February this year, JPMorgan agreed to pay $614 million to the federal government to settle allegations that it falsely certified poorly underwritten loans for FHA endorsement, causing massive losses to taxpayers in paid claims. Dimon lashed out at the government during a telephone briefing on the company’s second-quarter 2014 earnings report. He said JPMorgan lost a tremendous amount of money over what the government claimed was fraud but was in fact a “commercial dispute” between FHA and the bank. “We collected $600 million in insurance, the [government] disputed $200 million [alleging] it was fraud ...


July 18, 2014 - Inside Nonconforming Markets

Jumbo Borrowers Often Use Their Primary Bank

Jumbo borrowers in the market for mortgage financing often decide to work with the bank they already have a relationship with, according to new qualitative survey results from the Campbell/Inside Mortgage Finance HousingPulse Tracking Survey. Real estate agents participating in the survey were asked what factors drive an affluent homebuyer’s lender selection when opting for mortgage financing instead of an all-cash home purchase. “I’ve found they like to ...


June 27, 2014 - Inside The GSEs

RBS Agrees to Pay FHFA $99.5M To Settle Non-Agency MBS Lawsuit

The Federal Housing Finance Agency late last week announced it reached a nearly $100 million settlement with RBS Securities to settle allegations tied to non-agency MBS bought by Freddie Mac from 2005 to 2007, but the deal represents just a fraction of the firm’s remaining exposure. The $99.5 million settlement only resolves claims against RBS in FHFA v. Ally Financial Inc. in the Southern District of New York. Ally Financial is the successor company to GMAC-RFC, a now defunct non-agency MBS issuer.


June 27, 2014 - Inside Mortgage Trends

Bank Loan Sales Plummeted in Early 2014

Secondary market mortgage sales – the lifeblood of mortgage banking income – declined sharply during the first quarter of 2014, according to an Inside Mortgage Trends analysis of bank call reports. Commercial banks and savings institutions sold just $125.7 billion in single-family home loans through their mortgage banking operations during the first three months of this year. That was down 31.1 percent from the fourth quarter and marked the slowest ... [Includes one data chart]


June 27, 2014 - Inside Mortgage Trends

HAMP Gets Tweaks in its Twilight

The Treasury Department announced this week that the Home Affordable Modification Program and related initiatives will be extended again, this time until at least the end of 2016. HAMP activity has declined fairly steadily since 2010 but received a boost recently due to changes by the FHA. “We need to be there for homeowners facing foreclosure, those who are struggling with increasing interest rates on their modified mortgages and those whose homes are ...


June 20, 2014 - Inside Nonconforming Markets

Appetite for Jumbos Prompting Increased Portfolio Holdings for Some Top Lenders

Several top-tier commercial banks increased their holdings of first-lien mortgages during the first quarter of 2014, according to a new ranking and analysis by Inside Nonconforming Markets. The growing portfolios were largely due to jumbo mortgages along with some conforming loans. Banks and thrifts held $1.74 trillion in first-lien mortgages in portfolio at the end of the first quarter of 2014, down 0.7 percent from the previous quarter ... [Includes one data chart]


June 19, 2014 - Inside Mortgage Finance

Home-Equity Lending Slowed in Early 2014 For Most; Portfolios Continued to Dwindle

Home-equity lending fell off sharply during the first quarter of 2014, but the sector may be poised for a rebound in the months ahead. Home-equity originations totaled an estimated $13 billion during the first three months of this year, down 18.8 percent from the previous quarter. That was up 8.3 percent from the first quarter of 2013, and a handful of lenders reported increased home-equity activity in early 2014. Most closed-end seconds and home-equity lines of credit are retained...[Includes three data charts]


June 13, 2014 - Inside Mortgage Trends

Banks and Thrifts Dump More Servicing Rights

Commercial banks and savings institutions continued to pare down their portfolios of mortgages serviced for other investors during the first quarter, according to a call-report analysis by Inside Mortgage Trends. Banks and thrifts serviced a total of $4.56 trillion of home loans for other investors, most of which was associated with mortgage-backed securities. That was down 3.2 percent from the fourth quarter and marked the eighth consecutive ... [Includes one data chart]


June 13, 2014 - Inside Mortgage Trends

Bank Mortgage Repurchase Activity Fell to Six-Year Low in Early 2014

Commercial banks and savings institutions reported another decline in mortgage repurchase and indemnification activity in the first quarter of 2014, according to a new Inside Mortgage Trends analysis of call reports. The industry reported just $1.14 billion in aggregate repurchases and indemnifications related to single-family mortgage banking operations during the first three months of the year. That was down 21.4 percent from the previous period and ... [Includes one data chart]


Poll

Home-equity lending is beginning to show new life. My company (pick one):

Plans to enter this market over the next 12 months.
Is already making home equity loans and hopes to increase the offerings.
Is in the market but don’t expect much growth.
Is not making second liens and has no plans to do so.

vote to see results
Housing Pulse