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]
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.
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.
Mortgage repurchases by banks and thrifts took an unexpected turn higher in the third quarter of 2018, according to an Inside Mortgage Trends analysis of call report data. The banking industry reported $585.5 million in residential mortgage repurchases or indemnifications during the July-September cycle, a 38.5 percent spike from the previous quarter. The long-term trend still holds to a downward path. Year-to-date, banks and thrifts ... [Includes one data chart]
Mortgage lending and secondary market activity generated a modest increase in earnings for a diverse group of publicly held companies, according to a new Inside Mortgage Trends analysis of earnings reports. At the same time, servicing income was down substantially. The 13 companies included in the roundup reported a combined $816.3 million in income from production-related activity during the third quarter. That was up 2.8 percent from the ... [Includes one data chart]
For a company that’s coming off two back-to-back quarters of strong earnings, Texas Capital Bancshares, Dallas, is in a curious place: Its stock value continues to suffer mightily and its competitors in the warehouse sector believe its pricing is just too cutthroat to make sense. As Inside Mortgage Trends went to press late this week, TCBI’s common was trading at $50.17, a nick above its recent 52-week low of $49.34. Its high for the year is $103.05, which translates into a discount from ...
Commercial banks and savings institutions reported a total of $71.41 billion in home loan originations through their retail mortgage banking platforms during the third quarter of 2018, according to an Inside Mortgage Trends analysis of call report data. Retail mortgage production was down 5.1 percent from the second quarter and left year-to-date originations 13.6 percent below the amount reported during the first nine months of last year. The figures ... [Includes one data chart]