Roughly 90 percent of the time, residential loan officers never see the end mortgage customer, according to several weeks’ worth of interviews conducted by Inside Mortgage Finance. However, few in the industry think it’s a problem. “We have the technology not to see our applicants,” said Jim Picard, vice president of home loans for Denali Alaskan Federal Credit Union. The technology that Picard and others refer to is...
Risk weights established by the Basel Committee on Banking Supervision for holdings of securitized assets won’t have much of an impact on U.S. banks, according to analysts at Barclays Capital. It’s unclear which banks the risk weights will be applied to and many U.S. banks have transitioned to similar methods to evaluate capital requirements for their holdings of MBS and ABS. The BCBS issued a revised framework for calculating risk weights on banks’ securitization exposures in December. The framework is set to take effect in certain countries beginning in 2018. It was issued to address concerns that banks were holding insufficient capital for certain securitized assets and to reduce the reliance on external ratings to derive securitization risk weights. Barclays said...
Fourth-quarter earnings reports from the four megabanks in the mortgage industry suggest that loan production activity and mortgage banking income fell slightly at the end of 2014. On a combined basis, Wells Fargo, JPMorgan Chase, Bank of America and Citigroup originated $88.7 billion in home mortgages during the fourth quarter of 2014, according to a new Inside Mortgage Trends analysis of earnings reports released this week. That total was down ...
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