Cart

Inside Mortgage Trends

December 9, 2011

View Archived Issues

Banks Report Strong Gains in Mortgage Banking Earnings, More Business Volume

Commercial banks reported a robust $4.91 billion in mortgage banking earnings during the third quarter of 2011, according to a new analysis of bank call report data by Inside Mortgage Trends. Mortgage banking income was up 52.8 percent from the three months ending in June, reaching the industry’s highest level since the end of 2009. Despite the improvement, year-to-date mortgage banking earnings were still down 4.8 percent from the first nine months of 2010. The surge in mortgage banking earnings resulted from increased loan origination and secondary market activity. Banks reported...(Includes one data chart) Read More

MBA Critiques GSE Servicing Compensation Bid

A proposed radical shift in how lenders are paid for servicing Fannie Mae and Freddie Mac mortgages would make the business less feasible and skew the competitive landscape even more than it is, according to the Mortgage Bankers Association. In a comment letter to the Federal Housing Finance Agency, the MBA said the regulator and the two government-sponsored enterprises ought to shelve their controversial plan to reform servicing compensation. The FHFA and the GSEs have focused on two alternatives: a fee-for-service model favored by the agencies, and an industry proposal to reduce the... Read More

Settlement Delays and Cancellations Rise

The number of settlement problems as an overall percentage of market closings has increased in past months as on-time settlements plunged to 47 percent from 65 percent, according to the latest survey by the National Association of Realtors. Respondents to a monthly NAR survey cited problems with obtaining mortgages along with appraisal and inspection problems as causes of settlement delays and cancellations. The inability to obtain a mortgage was reported by 9 percent of respondents in October as causing a settlement cancellation, up from 4 percent in September. Asked whether they had any problems in... Read More

All May Benefit as MBA Takes Back MISMO

This week, the Mortgage Bankers Association announced it was bringing the Mortgage Industry Standards Maintenance Organization back into its fold after a more than two-year stint with Mortgage Electronic Registration Systems Inc., a move likely to benefit the mortgage lending industry at large as well as the three participating entities. Management of MISMO transferred back to the MBA on Dec. 1, 2011, under the terms of a deal announced back in September by MERSCorp. and the MBA. “MERSCorp successfully managed MISMO during an important period of technical and technological development for... Read More

Comprehensive Counseling Lowers Re-Default

“Tough-love” counseling for borrowers can curb re-defaults by looking critically at how all forms of spending affect a person’s ability to pay off mortgage and credit card debt, according to a subservicer that uses this approach. “Dollars are in competition when a family is in trouble,” said Stephen Stack, managing director of Outreach Financial Services. “There is a struggle between paying different creditors, and holistic counseling helps redistribute the money in the best way.” Holistic financial counseling looks at a borrower’s entire spending pattern – from mortgage to credit card to... Read More

Deconsolidation May Help Smaller Firms

Some large banks may be re-thinking their commitment to the mortgage business and creating opportunities for a number of mid-sized firms, according to analysts at FBR Capital Markets. Servicing problems and mounting repurchase demands have pushed some large banks to allocate less capital to mortgage banking and slowed their originations, FBR analysts said. “This has created an opportunity for smaller players to step up and fill the void while still attaining healthy margins,” the company added. FBR specifically pointed to PHH Mortgage, U.S. Bank, Quicken Home Loans, Provident Funding, BB&T and... Read More

Mortgage Trends

Home prices remain under stress. The CoreLogic Home Price Index shows that home prices have decreased 1.3 percent from September to October, making it the third consecutive month in which home prices have been on a downward slide. Looking at it from a wider scope, national home prices (including distressed sales) have decreased 3.9 percent from Oct. 2010 to Oct. 2011. Excluding distressed sales, Oct. 2011 posted a 0.5 percent yearly decline. States in the best shape, when including distressed sales, are West Virginia, with 4.8 percent price appreciation; South Dakota, with 3.1 percent... Read More

Latest Imf News

More Imf News

Featured Data

More Featured Data

Featured Reports

More Latest Reports

Featured Poll

As homeowner equity continues to build, more and more lenders are launching home equity lending products. Are you thinking of joining this market?

View Results