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Inside Mortgage Trends

December 23, 2009

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Mortgage Banking Profits Sag In Third Quarter, Banks Report

Commercial banks reported solid earnings from their mortgage banking operations during the third quarter of 2009, according to a new ranking and analysis by Inside Mortgage Profitability. Profits were down from the boom levels set earlier in the year. Commercial banks reported a total of $5.014 billion in earnings from their mortgage banking operations during the third quarter, down 21.9 percent... Read More

Production Earnings Slow in Third Quarter

Deteriorating profit margins on loan production activity led to a decline in overall mortgage banking profits for most firms during the third quarter, according to the Mortgage Bankers Association. Although most firms (81.6 percent) participating in the MBA’s quarterly performance report survey reported positive pretax earnings during the third quarter, average net income for the group fell by... Read More

Risk-Based Pricing Can be Key to Profitability

Risk-based pricing technology can help lenders fine-tune production activity to account for all the ever-changing details in their relationships with borrowers and investors in order to maintain or enhance their profits in the current economic climate. “The market has gotten very complicated,” said Bruce Backer, president of LoanSifter, a provider of loan product and pricing technology for... Read More

FASB Proposal May Improve Fair Value Analysis

Fair value analysis remains difficult, but the Financial Accounting Standards Board may have a remedy in the next few months that could make the job easier for analysts, according to a new report by Fitch Ratings. The FASB proposal would improve comparability by requiring further disclosure of the fair value of loans by portfolio segment, known as disaggregation. The proposal would also mandate the... Read More

Cole Taylor Jumps Back into Originations

Although mortgage originations are expected to fall precipitously next year, Taylor Capital Group is getting back into the residential mortgage origination business through its Cole Taylor Bank subsidiary. “We saw this as a great opportunity to diversify our revenue stream and increase our fee income as a bank,” said Randy Conte, Taylor Capital’s CFO and COO. “We also think there is a market... Read More

Successful Mods Require Legwork, Simplicity

Constant borrower communication and being as proactive as possible are keys to making loan modifications successful, experts say. Modifying loans early gives the best chance for success, said Michael Krimminger, a special policy advisor at the Federal Deposit Insurance Corp., during a recent hearing in the House Financial Services Committee. The FDIC modified some 23,500 borrowers after taking over... Read More

Technology Briefs

Avista Solutions, a provider of loan origination software solutions for the mortgage industry, recently updated its Avista Agile suite of products, whether for retail, wholesale or correspondent lending, to be compliant with the changes to the Real Estate Settlement Procedures Act that go into effect on Jan. 1. At the heart of the RESPA changes is the consumer concern that the... Read More

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