Banks left lending standards unchanged for most residential mortgages in the third quarter of 2019, even as demand rose significantly. Underwriting for commercial real estate loans stiffened.
Nonbanks dominate in residential lending nowadays but at least in multifamily finance they have a bit of girth. The analysis is based on 2018 HMDA data. (Includes data chart.)
In January, the origination forecast for 2019 looked bleak but that was before rates began their relentless descent. Today? Optimism abounds with several shops reporting strong lending results for 3Q19.
A smaller share of new Fannie Mae/Freddie Mac purchase business were recorded in the highest risk category. In the third quarter, most GSE loan acquisitions had credit scores of 740 and up. (Includes two data charts.)
Although residential originations remain strong, the loan brokerage sector has been steadily cutting jobs since the spring, according to the U.S. Bureau of Labor Statistics. Industry players question the numbers.
For the fiscal year ending Sept. 30, 2018, MBA took in $65.1 million of revenue versus expenses of $54.4 million, according to a newly released tax filing. Roughly half of its annual revenue comes from its hugely popular annual convention.
Seven publicly held nonbanks reported a combined loss of $47.8 million on their mortgage banking operations in the second quarter as interest rate volatility hammered their servicing books.
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