An increase in mortgage origination volume helped lenders increase earnings from loan production and secondary market activities during the first quarter of 2015, according to a new analysis by Inside Mortgage Trends. A diverse group of large and mid-sized companies reported a total of $1.910 billion in net earnings from their loan origination and marketing activities during the first three months of the year. That was up 20.1 percent from the ... [Includes two data charts]
Commercial banks and thrifts – most of them – continued their years-long retreat from the mortgage servicing rights market during the first quarter of 2015, according to a new Inside Mortgage Trends analysis of call reports. Banks serviced a total of $4.282 trillion of home mortgages for other investors as of the end of March. That was down $134.2 billion, or 3.0 percent, from the fourth quarter. Compared to a year ago, bank mortgage servicing ... [Includes one data chart]
Small and mid-sized independent mortgage bankers have key decisions to make about secondary market strategies and what to do with the mortgage servicing rights they create through originations, and experts say there isn’t a one-size-fits-all strategy. In secondary marketing, lenders that have become Fannie Mae or Freddie Mac approved sellers typically start out at the cash window, said Philip Rasori, chief operations officer at Mortgage Capital Trading ...
The past few weeks haven’t been particularly good for Nationstar Mortgage: Two top executives – including President and Chief Operating Officer Harold Lewis – announced their sudden retirements, and a handful of law firms accused the nonbank of making false statements about its financial condition. Achieving class action status on shareholder lawsuits can be a long and difficult road, but in general, investors in the nation’s largest nonbank servicer aren’t ...
The supply of mortgage warehouse credit available in the market has grown as new players entered a field with subdued production through most of 2014, but usage rates have begun to climb. The amount of outstanding borrowing by mortgage lenders has increased by 150 percent over the past year, said Stanley Street, president of Street Resource Group, in a recent interview with Inside Mortgage Trends. His firm provides a software platform for warehouse lenders ...
For a company that was on the brink of death seven years ago, Impac Mortgage Holdings is back and ready to take market share. In the first quarter of 2015, the California-based company reported a profit of $34.0 million, reversing a 4Q14 loss of $2.2 million and a $3.0 million loss from a year ago. Impac attributed the improved earnings to higher mortgage origination volume and the recognition of $24.4 million of deferred tax assets offset by losses on ...
Household debt has increased since mid-2013 at a faster rate than income, prompting concerns among some industry analysts. DBRS noted that while job market trends are likely to remain favorable, borrowers’ performance across many asset classes is expected to weaken in the next 12 months. According to the Federal Reserve Bank of New York, household debt peaked in the fourth quarter of 2008 at $12.67 trillion. The debt measurement, which includes mortgages, student loans, auto loans, credit cards and other borrowing, fell to $11.15 trillion in the second quarter of 2013.
The U.S. Department of Housing and Urban Development Secretary Julian Castro and Rep. Ed Royce, R-CA, agree that housing reform needs to happen, but while Royce emphasized the need to get private capital back in the system, Castro focused on the issue of credit access. Royce and Castro were speakers during a June 3 housing finance forum in Washington sponsored by the National Journal. Castro said part of the challenge for Democrats and Republicans in both Houses is the issue of access to credit. “How do you ensure that in the system there’s a good amount of access of credit to people of moderate means just like people of strong means,” said Castro.
The Federal Home Loan Bank of Des Moines and Federal Home Loan Bank of Seattle completed their merger June 1, the first time in 80 years that two regional banks have combined forces. The combined banks will operate under the Federal Home Loan Bank of Des Moines name and as a result of the voluntary merger, it will become the largest bank in the FHLB system geographically and membership wise, serving close to 1,500 institutions in 13 states and three U.S. Pacific territories. While the FHLB Des Moines had 1,156 members and $95.5 billion in assets as of Dec. 31, 2014, the FHLB Seattle had 316 members and had $35.1 billion in assets as of the end of 2014.
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