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Inside Mortgage Trends

August 5, 2011

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More Lenders Report Mixed Results, But Mortgage Banking Profits Steady

A second round of mortgage banking earnings reports over the past two weeks suggests that the industry managed to churn out fairly stable profits despite a sharp decline in production during the second quarter of 2011. A group of 11 mortgage lenders over the past two weeks reported a combined $183.3 million in net earnings from their mortgage banking operations during the second quarter. That was down 48.7 percent from the group’s earnings for the first three months of the year. As was the case with the first round of earnings reports, the group’s combined results were heavily weighted by a substantial loss reported by one company. PHH Mortgage reported... [Includes one data chart] Read More

MetLife to Shed Depositories, Retain Mortgages

MetLife isn’t getting enough bang for its buck out of its depository banking business to justify the amount of regulatory oversight it has to contend with in a highly competitive market. Facing the prospect of even more intensive regulation ahead, the company has decided to look for a purchaser for that line of its operations. But the insurance industry giant plans to keep its mortgage banking business, MetLife Home Loans, most of which was acquired from First Horizon in 2008. The company also picked up EverBank’s reverse mortgage business. Given MetLife’s focus as a global insurance and employee benefits player, the company has decided that... Read More

Licensing Data Point to Potential Profit Centers

Pound for pound, mortgage loan officers licensed to do business in California appear to generate a lot more business than their counterparts elsewhere around the country. A new analysis of state mortgage licensing data by Inside Mortgage Trends found that California had a relatively small number of registered mortgage loan officers, or MLOs, compared to the size of the state’s mortgage market. California typically accounts for 20 percent or more of U.S. residential mortgage activity, but its 3,519 registered MLOs represented just 3.5 percent of these individuals tracked in the National Mortgage Licensing System. That appears likely to... [Includes one data chart] Read More

FHFA Urged to Air Servicing Fee Proposals

The Mortgage Bankers Association urged the Federal Housing Finance Agency to include other fee structures and not just seek public comment on one servicing fee structure in a forthcoming proposal. The FHFA has been working behind closed doors with Fannie Mae, Freddie Mac and Ginnie Mae to devise a new servicing compensation structure for mortgages securitized by the agencies, which account for over 90 percent of new lending. Industry groups and others have been consulted during the process, which is expected to result in an exposure document subject to public comment. The MBA cautioned the FHFA against showing preference for any... Read More

Loan Limit Reduction Will Have Limited Effect

In the 18 states that have loan limits scheduled to expire come October, the impact on borrowers will be minimal, according to a recent report released by economists at the Federal Housing Finance Agency. The National Association of Realtors, the Mortgage Bankers Association and the National Association of Home Builders have been lobbying to extend current high-cost loan limits that are scheduled to decline from a maximum of $729,750 to $650,500 on Oct. 1, claiming that the market isn’t stable enough to stand up without them. Sens. Robert Menendez, D-NJ, and Johnny Isakson, R-GA, this week introduced S. 1508, the Homeownership Affordability Act of 2011, to allow... Read More

Mortgage Trends

A report by RealtyTrac shows that foreclosure activity decreased on a year-over-year basis in 178 of the nation’s 211 metropolitan areas with a population of 200,000 or more. The report found a decrease in foreclosure activity in the top 10 metropolitan areas in the first half of 2011 compared to the first half of 2010. Seattle was the only exception with a nearly 10 percent increase in foreclosure activity from the first half of 2010. Seattle’s foreclosure rating is now 57th among all metro areas, up from a 97th ranking in the first half of 2010. California, Nevada and Arizona cities represented the top 10 metro foreclosure rates and 15 of the top... Read More

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