Most of the gain in production income occurred at JPMorgan Chase, which reversed an unusual loss in the fourth quarter. Wells Fargo accounts for most of the increase in servicing profits.

JPMorgan Chase reported a $200 million increase in mortgage banking income in the first quarter of 2019, a period when the banking industry managed just a $21 million gain.

Many lenders still rely on the "natural hedge" that balances gains on the production side against losses on servicing, but timing is an issue. Retention may be the best hedge of all.

Ocwen Financial, the nation’s 12th largest servicer, has reached a civil settlement with the Massachusetts Office of the Attorney General, to resolve a complaint filed by the state in 2017. As part of the agreement, Ocwen will make a $675,000 payment and provide relief to residential borrowers. The Massachusetts AG said the settlement involves total restitution of $2 million. The AG alleged that Ocwen committed “widespread mortgage servicing violations that increased Massachusetts ...

The fourth quarter of 2018 was one of the hardest times in recent memory for companies to generate a profit from their mortgage banking operations. The Mortgage Bankers Association reported that only 44.0% of participants in its quarterly performance survey managed to report positive pre-tax net income for the final three months of last year. This appears to be the lowest share of firms producing positive results in many years, lower than the 54.2% share back in the first quarter of 2014 ...

After more than a year of pessimism among many lenders regarding profit margins, the outlook is improving, according to a survey by Fannie Mae.

There was nowhere to hide in the fourth quarter of 2018 as mortgage banking income fell sharply both in loan production and servicing, according to a new Inside Mortgage Trends analysis of earnings reports from publicly held companies. [Includes one data chart]