Both sides of the mortgage banking business posted modest gains in profitability during the second quarter of 2013, according to a new analysis by Inside Mortgage Trends of earnings reports from nine lenders. The group reported a total of $4.34 billion in production-related income during the second quarter, up 2.8 percent from the first three months of the year. That’s a relatively strong showing given that their total origination volume increased by just 0.7 percent ... [Includes one data chart]
A fresh batch of earnings reports from 15 major mortgage lenders underscored the strength and breadth of the industry’s financial success in the second quarter of 2013. A group of 15 lenders, including a number of nonbanks and regional banks that typically report somewhat later in the earnings cycle, posted a combined $794.8 million in earnings from their mortgage banking operations during the second quarter, according to a new Inside Mortgage Trends analysis. That was up ... [Includes one data chart]
Redwood Trust is about to have company from other real estate investment trusts looking to issue non-agency jumbo mortgage-backed securities. Two Harbors Investment will issue its first jumbo MBS later this month, and PennyMac Mortgage Investment Trust plans to issue a security by the end of September. Redwood helped revive non-agency jumbo MBS issuance beginning in 2010 and has been active in the sector ever since. Following the financial crisis, no other REITs joined Redwood even though ...
Two firms are offering new services that they claim will help lenders prevent buyback requests from the government-sponsored enterprises or prevail in buyback disputes. Both services rely on verification of loan characteristics. Equifax announced last week that it significantly enhanced its “retro income verification service,” known as “Point In Time.” The firm said its offering will help reduce repurchase requests by delivering the most current and accurate loan-level verification of a borrower’s ...
Seeing a business opportunity with the ongoing explosion in new mortgage rulemaking, software providers LendingQB and DocuTech recently formed a strategic alliance, integrating their platforms and enabling their clients to streamline their compliance document preparation. LendingQB is a Costa Mesa, CA-based company that specializes in loan origination technology and services for the mortgage industry. DocuTech, based in Idaho Falls, ID, is a provider of enterprise-class compliant ...
Rising home values and mortgage interest rates drove down nationwide housing affordability in the second quarter, while a projected slowdown in labor force growth suggests weaker future housing activity, various industry analyses indicate. In its latest home price analysis, CoreLogic reported an 11.9 percent year-over-year increase in June 2013 for home prices nationwide, including distressed loans. This represents the 16th consecutive monthly increase in home prices [Includes one data chart] ...
The warehouse lending market continued to hum along in the second quarter, but executives in charge of extending credit to nonbank mortgage lenders are beginning to see certain warning signs, including lower profit margins. “Profits are definitely tightening,” said Chuck Mueller, president and CEO of Fidelity Bank, Edina, MN, a one-branch bank whose forte is warehouse lending. Some executives note...[Includes one data chart]
Fannie Mae and Freddie Mac posted a combined $15.1 billion in profit during the second quarter of 2013, along with the lowest inventory of repurchase activity since the two government-sponsored enterprises went into government conservatorship and began aggressively enforcing representations and warranties provided by sellers and servicers. As of the end of June, the two GSEs had a combined $5.78 billion in outstanding repurchase demands, a 16.8 percent decline from the first quarter. Although Fannie’s unresolved buyback caseload was...[Includes one data chart]
After more than five years of operation, Home Affordable Refinance Program activity is expected to decline. However, industry analysts suggest that if the Federal Housing Finance Agency continues to implement changes requested by lenders, HARP activity could remain strong through 2014. “This deep cooperation and aggressive policy action are key reasons why HARP burnout has been elusive so far and suggests HARP risk is likely to remain elevated despite the interest rate sell-off, in our view,” analysts at Barclays Capital said late last week. Analysts at Bank of America Merrill Lynch project...
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