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Volume 23 - Number 6

March 22, 2019

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4Q18 Income Down Sharply For Public Nonbank Lenders

Several publicly held nonbank lenders took a beating on servicing hedges and other factors during the fourth quarter of 2018, according to a new Inside Mortgage Trends analysis of earnings reports. Seven public firms reported a combined loss of $120.53 million on mortgage banking activity during the fourth quarter. An eighth nonbank, Ditech Financial, has not reported yearend earnings and entered bankruptcy protection for a second time ...[Includes one data chart]

Mortgage Income Clobbered From Both Sides in 4Q18

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. The group of 13 lenders reported a combined $513.5 million in production-related income for the fourth quarter. That was down $302.8 million from the previous period and put year-to-date income on production and ... [Includes one data chart]

Impac’s Shift Toward Non-QMs Prompts Turnover

Impac Mortgage Holdings is putting a strong emphasis on originating non-qualified mortgages as the product offers attractive margins. But the shift also has prompted large layoffs and employee turnover as non-QM volume hasn’t completely replaced production of conforming mortgages. Impac originated $1.30 billion of non-QMs in 2018, accounting for 33.9% of its total originations. In 2017, Impac produced $891.2 million of non-QM loans, accounting for 12.5% of ...

Concerns About Profit Margins Ease Somewhat

After more than a year of pessimism among many lenders regarding profit margins, the outlook is improving, according to a survey by Fannie Mae. The government-sponsored enterprise surveyed senior executives at 184 lenders in February. Some 28% reported that they expect profit margins to decrease in the second quarter. In previous survey results, 45% of lenders reported expecting lower profit margins for the first quarter of 2019 and a similar share expected lower profit margins ...

HELOC Providers Need to Improve Digital Offerings

A lack of digital offerings has become a major drag on the home-equity market as customers are more likely turning to alternative sources of funding, according to a new study by J.D. Power. The satisfaction score of home-equity line of credit products among customers who use solely digital channels is 819 on a 1,000-point scale, the lowest compared to the satisfaction scores of HELOC customers who gather information in person or via phone only (836) and those who use both online and ...

Mortgage Employment Weak. But Better Days Ahead?

Mortgage banking firms trimmed 1,100 posi-tions during January, ending the month with 239,900 full-timers on their payrolls, according to figures compiled by the Bureau of Labor Statistics. Loan brokers, on the other hand, added 500 positions, bringing employment in the sector to 86,300. The BLS figures trail the national numbers by a month but remain a decent barometer of hiring trends in these two separate, but distinct, corners of the industry. The fact that brokers are hiring is a ...

Bank Repurchase Volume Falls to Record Low in 2018

Mortgage repurchases by banks and thrifts fell to $2.29 billion in 2018, the lowest annual total since institutions began reporting this activity on quarterly call reports in 2007. It would have been a lot lower without Bank of America. The North Carolina-based megabank reported $1.04 billion in mortgage repurchases last year, or 45.3% of the industry’s total. BofA did see a decline in repurchases: down 32.4% on a year-to-date basis ... [Includes one data chart]

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