Bank Profitability

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

April 22, 2016 - Inside Nonconforming Markets

BofA, Chase Differ on Loans Not Sold to GSEs

Bank of America and JPMorgan Chase are using somewhat different strategies for conforming mortgages eligible for sale to the government-sponsored enterprises. Both banks are originating significant amounts of conforming mortgages and retaining some of the loans in portfolio instead of delivering them to the GSEs. BofA said its mortgage-banking income has declined due to holding mortgages in portfolio while Chase sold some of the credit risk on its conforming mortgage ...

April 22, 2016 - Inside MBS & ABS

Agency MBS Trading Hits Low for the Year; Is Liquidity an Issue or Is This the ‘New Normal’?

The average daily trading volume in agency MBS fell to $189.4 billion in March, the lowest reading of the year, and a sign that liquidity may still be an issue, depending on which seat you’re in. According to figures compiled by the Securities Industry and Financial Markets Association, the trading numbers for 2016, so far, haven’t exactly lit the world on fire. In January and February, the readings were $195.1 billion and $201.4 billion, respectively. Last year, the best reading was...

April 15, 2016 - Inside Mortgage Trends

A Tepid 1Q16 for the Megabanks and Mortgages

Three megabanks – Wells Fargo, JPMorgan Chase and Bank of America – posted modestly lower originations in the first quarter of 2016, thanks in part to seasonality as well as continuing their cautious behavior of sticking to bread-and-butter conventional lending. In their just-released earnings reports, there was no mention of production problems tied to the controversial integrated-disclosure rule known as TRID. Then again, given their size and the fact that they’re ...

April 14, 2016 - Inside Mortgage Finance

New Disclosures by PHH Cast Doubt on Salability of the Nonbank Mortgage Giant

Over the past two years, PHH Corp. has lost $64 million on its mortgage business and now that Merrill Lynch has given notice that it wants to end some of its private-label contracts with PHH Mortgage, the nonbank’s future is beginning to look cloudier. Moreover, analysts and investors who follow the company wonder whether PHH’s private-label model – the bread and butter of its origination business – is fixable in the modern era of mortgage banking. Meanwhile, all of this is happening at a time when management hopes to sell the company, or at least field offers for some of its key assets, including a $226 billion servicing portfolio. The bad news for PHH started...

April 8, 2016 - Inside FHA/VA Lending

GNMA Market Slumped in 1Q16, But Monthly Data Show Rebound

Ginnie Mae issued $93.41 billion of single-family mortgage-backed securities during the first three months of 2016, an 8.6 percent drop from the previous quarter, according to a new Inside FHA/VA Lending analysis of loan-level MBS data, excluding FHA reverse-mortgage activity. Early 2016 was the slowest market in a year for Ginnie MBS production, though it still was stronger than most of the agency’s pre-2015 business. And issuance in the first quarter of 2016 was 17.0 percent ahead of the volume produced during the same period last year. The soft spot in the first quarter was FHA lending, especially purchase-mortgage activity. Issuers delivered $54.44 billion of FHA loans into Ginnie MBS during the period, a 12.1 percent drop from the fourth quarter, including a 15.0 percent decline in FHA purchase mortgages. Securitization of VA loans fell by a ... [4 charts].

April 8, 2016 - Inside Nonconforming Markets

Originations of IOs Increased in 2015

The volume of interest-only mortgages originated in 2015 increased compared with the previous year, according to a new ranking by Inside Nonconforming Markets. IOs appear to be the most common type of non-qualified mortgage currently being offered by lenders. A group of 12 lenders originated $29.56 billion in IOs in 2015, up 8.5 percent compared with the previous year. The loans fell outside of QM standards set by the Consumer Financial ... [Includes one data chart]

April 1, 2016 - Inside Mortgage Trends

Bank Loan Sales Drop in 4Q, Weak Year Overall

Commercial banks and thrifts reported $153.1 billion in single-family home loan sales by their mortgage-banking operations during the fourth quarter of 2015, a steep 24.8 percent drop from the previous quarter. For the year, secondary market activity was up from 2014 but still relatively sluggish. Depository institution mortgage-banking shops sold $721.2 billion of home mortgages last year, a 19.9 percent increase from 2014. But 2015 was the ... [Includes one data chart]

March 25, 2016 - Inside Nonconforming Markets

News Briefs

CORRECTION: An update to a story in the March 11 issue of Inside Nonconforming Markets with the headline “Banks’ First-Lien Holdings Increase in 2015” is available at The story and accompanying ranking were revised because the ranking initially showed numbers from the second quarter of 2015 for the fourth quarter of 2014. Five Oaks Investment said it recently determined ... [Includes five briefs]

March 25, 2016 - Inside Nonconforming Markets

Banks’ HEL Holdings Down Slightly in 4Q

Bank and thrift holdings of home-equity loans declined by less than 1.0 percent in the fourth quarter of 2015 compared with the previous quarter, according to a new ranking from the Inside Mortgage Finance Bank Mortgage Database. Banks and thrifts held $944.33 billion in home-equity lines of credit, unused HELOC commitments and closed-end second liens in portfolio as of the end of the fourth quarter of 2015, down 0.8 percent from the third quarter ... [Includes one data chart]


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