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Inside Mortgage Trends

September 24, 2010

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Mortgage Banking Earnings Weaken At Commercial Banks in 2nd Quarter

Commercial banks and holding companies generated $3.96 billion in net income from their mortgage banking activities during the second quarter of 2010, according to a new Inside Mortgage Trends analysis and ranking. That marked the sixth consecutive quarter of solid earnings from mortgage banking activities since... [Includes one data chart and one graph] Read More

Volume Boost Helps Average 2Q10 Earnings

Increased origination volume in the second quarter helped mortgage bankers earn higher average income on their business, according to the Mortgage Bankers Association quarterly performance report. Companies participating in the MBA survey reported average net income after adjustments of... Read More

Shared Technology Boosts Productivity

Mortgage lenders are increasingly turning to technology architecture based on sharing resources, such as cloud computing and software as a service, to approve loans more efficiently and accurately. Cloud computing involves moving a company’s server infrastructure onto a third-party site. The third party takes control of... Read More

NexBank Takes the Warehouse Lending Plunge

Seeing a market opportunity when others felt the need to back off and retrench, Dallas-based NexBank has launched a new $100 million warehouse lending program for select small and mid-sized mortgage bankers and brokers to help provide them the extra capacity and flexibility to grow and... Read More

Credit Terms Expected to Tighten, Survey Shows

The supply of available credit may not keep up with consumer demand through the end of 2010, adding to an already-troubled housing market and high rates of unemployment, according to a new survey. The Professional Risk Managers’ International Association conducted the quarterly survey, asking risk professionals for their views on... Read More

Fraud Enforcement Efforts Bolstered by 2009 Law

The Fraud Enforcement and Recovery Act signed into law in May 2009 has allowed regulators to pursue fraud cases more vigorously, allowing officials to push for earlier intervention in problem institutions. A major feature in FERA was an increase in funding of almost $500 million for the government to pursue... Read More

Basel III Limits MSR as a Component of Capital

If U.S. banking regulators adopt the latest round of Basel capital requirements, banks will be pushed towards pricier, higher quality capital, in part because they will be faced with a limit on the degree to which mortgage servicing rights can be counted as capital. Big changes to the servicing industry could... Read More

Compensation Limits Need More Fed Guidance

Compensation based on loan terms regardless of product type, interest rate or other features will no longer be allowed for mortgage loan originators in wholesale or retail as a result of new regulations and prohibitions under the Dodd-Frank Wall Street Reform and Consumer Protection Act and new Federal Reserve Board rules. Both the Dodd-Frank Act and final rules... Read More