Researchers at the FRB of Richmond demonstrate how banks that gain local market share by acquiring an existing bank are likely to decrease FHA lending even while increasing conventional lending.
The parent companies of Planet Home Lending and United Wholesale Mortgage were hit with rating moves by Fitch Ratings, which cited an increase in corporate leverage at the companies.
Banks and thrifts had a combined $2.49 billion of mortgage-banking income in the third quarter. Western Alliance Bank stood out, more than doubling its earnings from the second quarter. (Includes data table.)
Leaders at the three major credit bureaus, which own VantageScore, expect to see strong revenues and profits as the GSEs allow VantageScore to compete with FICO.
Lenders with high adoption rates for tools from Freddie Mac like automated collateral estimator and asset and income modeler have significantly lower per-loan costs and higher per-loan profits, the GSE says.
After originating HELOCs on its own as a proof-of-concept, Figure Technology Solutions is now largely facilitating originations and loan sales for others, charging fees along the way. The company generated $89.8 million of net income in the third quarter.
Primis Bank, SmartBank, Bank7 and other smaller banks are touting efforts to increase their mortgage lending. Meanwhile, some banks continue to pull back from the sector.
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