A year ago, mortgage servicing brokers were seeing five or fewer bidders on bulk offerings. Today, 10 or more bidders show up, many of which are nonbanks or have owners that are hedge funds or private-equity firms.
The refrain from bank management was virtually unanimous: mortgage production dropped significantly and gain-on-sale margins narrowed. Although mortgage servicing right values continued to climb, that doesn’t always translate into improved earnings on that side of the business.
Banks of all sizes reported sharp declines in their mortgage banking earnings during the third quarter of 2013, according to a new analysis by Inside Mortgage Trends. The refrain from bank management was virtually unanimous: mortgage production dropped significantly and gain-on-sale margins narrowed. Although mortgage servicing right values continued to climb, that doesn’t always translate into improved earnings on that side of the business. A diverse group of 19 lenders – including all ... [Includes one data chart]
The market for servicing sales has been strong for most of 2013, but could get even better between now and year-end as the megabanks look to dump their “legacy” problems and small shops sell mortgage servicing rights to boost earnings in a weak origination market. “It used to be that Bank of America, Wells, and JPM were the buyers [of servicing],” said Tom Piercy, managing member of Interactive Mortgage Advisors, Denver. “Now they’re the sellers. It’s a totally different environment now.” A year ago ...
The ability-to-repay rule issued by the Consumer Financial Protection Bureau in January would exclude more than one in five loans originated today from the full “safe harbor” legal protections for so-called qualified mortgages. That’s the chief finding of an analysis of August and September 2013 originations by ComplianceEase, a provider of risk management solutions based in Burlingame, CA. ComplianceAnalyzer, the firm’s patented automated compliance solution, is now capable of auditing loans for ...
BOK Financial is jumping into the online mortgage origination channel with the launch of HomeDirect Mortgage to serve consumers who are increasingly going to the Internet to shop for mortgages. The Tulsa-based company said the new channel complements BOK’s mortgage operation, which originated an estimated $4 billion in loans through its retail channel in 2012. As a “direct” lender with an automated online application system, HomeDirect is aiming for homebuyers who are computer savvy and searching ...
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