The nation’s megabanks have started reporting second-quarter results, revealing a mixed bag when it comes to residential originations, according to a new analysis from Inside Mortgage Finance. The nation’s largest home lender, Wells Fargo, so far, has turned in the strongest performance of the group, funding $56.0 billion of product, a handsome 27.3 percent improvement from the first quarter of the year. Bank of America held its own with a 15.8 percent sequential improvement and U.S. Bank hiked its production game by a more modest 10.2 percent. And then there are...[Includes one data table]
It hasn’t been a pretty month for Walter Investment Management, the publicly traded parent company of the nation’s eighth largest servicer. And it could get even uglier by the time summer is out. Not only is Walter in danger of being kicked off the New York Stock Exchange – for having a share price of less than $1.00 for too many days – but investors appear to have given up on the company and the idea that a restructuring, now in progress, will yield positive results. If Walter is...
Wells Fargo plans to increase originations by putting an emphasis on interest-only mortgages, according to John Shrewsberry, the bank’s CFO. “We are making some modest changes to generate new loan originations, including offering interest-only jumbo mortgage loans to high quality borrowers,” Shrewsberry said late last week during Wells’ earnings call for the second quarter. Wells had...
Home prices aren’t increasing nearly as much as they have in other times when the inventory of homes for sale was low, according to analysts at Capital Economics. They suggest that “cautious” appraised values and tight underwriting by lenders have limited home price appreciation. Home prices are currently rising at an annual rate of around 6.0 percent. According to Capital Economics, current inventory levels and the measure of buyer and seller traffic separately suggest that annual house price growth should currently exceed 10.0 percent. “Although there is no hard data on the subject, we suspect one factor is that cautious home appraisers are preventing larger price gains,” the analysts said. Since early 2015, appraised home values have...
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