Thanks to rising interest rates and stunted production volume, banks and thrifts posted their lowest earnings for mortgage banking since the last quarter of 2008. (Includes data chart.)
The fintech expects cost savings tied to the workforce reductions to materialize starting in the first quarter of 2023. Meanwhile, KBW upgraded the company’s stock to market perform.
Publicly held banks reported a 20% decline in mortgage banking income from the second to the third quarter as more firms shift away from the originate-to-sell model. Servicing generally helped offset faltering profits on production and secondary marketing. (Includes data chart.)
Mortgage servicing right markups have allowed several companies to report net profits this year when, absent these non-cash entries, they’d be in the red. But advisors suggest some MSR holders might be pushing the envelope on their valuations.
Implementation of Ginnie’s risk-based capital requirements delayed; Fitch downgrades ratings of Finance of America, Provident; foreclosure starts decline; new alerts in Freddie’s Loan Advisor dashboard; MISMO seeks comments on three proposals; Staircase offers MSR transfer automation; LoanCare launches HELOC servicing; new LO recruitment tool.
Banks and thrifts saw another drop in mortgage banking income in the second quarter of 2022. Trends varied widely among banks, with some big players managing to improve earnings while others falter. (Includes one data chart.)
Publicly traded nonbank mortgage lenders posted sharply lower profits in the second quarter as strong competition cut into margins. Two firms managed to increase mortgage-related income: homebuilders. (Includes data chart.)
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