Production of expanded-credit mortgages increased in the second quarter but not by nearly as much as the surge in total originations. The sector was crowded out to some extent by conventional loan refinances.
Holdings of first liens by banks and thrifts increased in the second quarter. JPMorgan Chase ranked second with a portfolio of $231.21 billion, but its holdings were off on both a quarterly and an annual basis.
The combined delinquency rate of the entire FHA portfolio rose by 94.8 basis points in the second quarter, returning to normal levels following a dip in 1Q19. The increase was fueled by short-term late payments.
Mortgage banking income was up in the second quarter but didn’t keep pace with big increases in loan origination volume and secondary market sales. Wells Fargo accounted for the lion’s share of the increased profitability.