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Inside Mortgage Trends

May 1, 2009

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Mortgage Banking Profits Soar On Surging Production Gains

The mortgage banking business posted a huge gain in profitability during the first quarter of 2009 as reduced competition and surging new origination volume led to record earnings. A diverse group of 21 major mortgage lenders reported a whopping $9.153 billion in mortgage banking earnings during the first three months of 2009, according... [Includes one chart and one graph] Read More

Plenty of Rough Water Ahead for Industry

Mortgage lenders will continue to face challenges to their profitability for some time to come, partly because the housing market is stuck in a recession while the larger economy is also flat on its back, a relatively rare confluence of negative events that has the potential to exacerbate one another. “We expect economic growth to continue to contract – maybe not by the levels of the... Read More

Small Banks May Help Restore Warehouse Lending

The huge decline in the availability of warehouse funding for mortgage bankers has created a lucrative opportunity for lenders to step into the market, one that small and large firms are beginning to explore. In recent weeks, Residential Capital and Wells Fargo have announced plans to provide warehouse funding. Although industry efforts to generate some form of government backing for new... Read More

TALF May Boost Servicer Options

The Federal Reserve Board last month broadened the eligible collateral for loans extended by its Term Asset-Backed Securities Loan Facility to include mortgage servicing advances. An analysis by Moody’s Investors Service said the expansion could increase investor appetite in the program, and sources also noted that the move could come to the rescue of many servicers... Read More

Lenders Can Monetize Homebuyer Tax Credit

One small provision inside the Housing and Recovery Act of 2008 gives a tax credit to first-time homebuyers, but lenders are getting more creative than the government originally expected. A Georgia-based firm has transformed the post-closing tax credit into a pre-closing downpayment, and there is a push for other industry participants to do the same. The credit initially applied to homes... Read More

H.R. 1728 Imposes New Burdens, Liabilities

Efforts by Congress to clamp down on abusive mortgage lending practices may do more than just quarantine certain business practices; they may also make a significant dent in mortgage lenders’ profitability. The House Financial Services Committee approved legislation this week that may raise compliance costs and create new liabilities and penalties. One of the most... Read More

BofA Reveals New Mortgage Brand

Bank of America unveiled a revamped mortgage brand this week – Bank of America Home Loans – along with a new consumer disclosure model designed to improve transparency for potential borrowers. After it acquired Countrywide Financial last year, BofA said it planned to phase out the Countrywide name by early 2009 as it completed integration of its two mortgage businesses. The company... Read More

Technology Update

With the Home Valuation Code of Conduct regulations going into effect today, MDA Lending Solutions has announced the... Avista Solutions recently announced the launch of its SAIL rapid implementation methodology. SAIL, which stands for... More lenders are looking to implement end-to-end loan origination software, saving time and money, according to... Read More

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