Although employment in the mortgage industry has been fairly robust the past few years, it’s been a dicey proposition for real estate appraisers. According to figures compiled by the Appraisal Institute, a national trade group that represents the sector, there were 82,208 active license holders at last count, down 8.1% from four years earlier.
As mortgage profits weaken, two banks that have had a foothold in residential finance for several decades are taking different paths. One, TIAA Bank, Jacksonville, FL, is exiting traditional retail but staying in the mortgage space. The other, Provident Savings Bank, Riverside, CA, is getting out entirely.
The majority of lenders now offer a front-end digital mortgage process for borrowers but there is considerable variability in adoption rates for various back-end processes, a survey by Strategic Mortgage Finance Group showed.
Commercial banks and savings institutions made money on their mortgage banking activity during the fourth quarter, but not that much. [Includes one data chart.]
Mortgage lenders that deliver loans into Fannie Mae and Freddie Mac mortgage-backed securities continued to face relatively few repurchase demands from the two government-sponsored enterprises last year. [Includes two data charts.]
The agency purchase-mortgage market saw a higher share of first-time homebuyers in 2018 and increased reliance on conventional financing rather than government mortgage insurance. [Includes one data chart.]
Mortgage giants Fannie Mae and Freddie Mac are scheduled to report fourth-quarter results next week and chances are the two will once again show strong earnings, but the black ink likely will pale a bit from the $6.7 billion they posted (combined) in the third quarter.
The mortgage industry is bracing for a flat year in terms of volume due to higher mortgage rates, a slowing economy and weak loan demand. [Includes one data chart.]
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