Commercial banks and savings institutions reported another decline in the volume of mortgages they repurchased in the third quarter of 2024. PNC Bank accounted for the largest chunk of the bank industry’s repurchases, at 11.3%.
Mortgage repurchases by banks and thrifts during the second quarter were the lowest since before the 2008 financial crisis, according to a new Inside Mortgage Trends analysis of call-report data. (Includes data table.)
The mortgage process met or exceeded the expectations of many homebuyers; interest rates look to be too high for potential homebuyers; the defect rate on mortgages declined again; tech vendor raises $19 million; Altisource Asset Management exits mortgage market.
Lenders look to remote online notarization; Ocrolus offers rep-and-warrant coverage for income calculations; ICE offers tool to facilitate reconsiderations of appraisals; Planet Home launches products to help borrowers compete with cash offers; property insurance costs rise nearly 20%; Flagstar plans tech accelerator program; disconnect on homebuyers’ plans and saving for a downpayment.
Repurchase and indemnification activity at banks and thrifts in the third quarter was the lowest since at least the second quarter of 2016. (Includes data table.)
Commercial banks reported a slight sequential increase in repurchases in the second quarter. But at the midway point this year, buybacks were down sharply compared to the first half of last year. (Includes data chart.)
James Brody, a senior litigation partner at Garris Horn, provided strategies lenders could use to avoid repurchase demands, which included negotiating contract terms, diversifying their investor deck and outsourcing underwriting.
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