Cart

Inside Mortgage Trends

June 10, 2016

View Archived Issues

Banks Still Backpedaling Away From MSR Business as Valuations Tumble

The banking industry still hasn’t touched bottom in its years-long retreat from the mortgage servicing rights business. Banks and thrifts reported a total of $4.001 trillion of single-family mortgage servicing for other investors, most commonly mortgage-backed securities trusts, as of the end of March. That was down some $52.9 billion from the previous quarter, a 1.3 percent decline, according to a new analysis of call-report data by Inside Mortgage Trends ... [Includes one data chart] Read More

Mortgage Banking Profits Down in Early 2016

Upheaval in hedging mortgage servicing rights during the first quarter of this year damped what was otherwise a strong performance by the loan production side, according to data reported by the Mortgage Bankers Association. Participants in the MBA’s quarterly performance study reported average pretax income of $752,000 for the first three months of the year. That was down 36.8 percent from the fourth quarter, and represented the lowest reading since ... Read More

Fannie Set to Use Trended Credit Data

Later this month, Fannie Mae will begin to use trended credit data when completing credit risk assessments on mortgages submitted to the government-sponsored enterprise. Fannie claims the data “allow a smarter, more thorough analysis” of a borrower’s credit history, though the mortgage approval rate by the GSE isn’t expected to change much. In Selling Guide Announcement SEL-2016-04 published last week, Fannie detailed plans for trended credit data in the pending ... Read More

Production, Servicing Profits Fade in 1Q16

A new Inside Mortgage Trends analysis of publicly-traded lender earnings reports reveals that profitability fell on both the production side and loan servicing. A group of 12 major lenders reported a combined $1.15 billion in production-related income for the first quarter, a 3.1 percent drop from the previous period. That outcome doesn’t look so bad in light of the fact that the group’s total origination volume was down 5.3 percent from the fourth quarter ... [Includes one data chart] Read More

Some Mortgage Lenders Are Hiring

Mortgage lenders of different charters and sizes are in a hiring mode as the summer approaches, thanks to continued low interest rates and a strong job market. Moreover, origination profits are picking up. All of this spells good news for anyone with mortgage experience – be it loan officers, underwriters and especially technology workers with software writing and compliance-related backgrounds. “Most of our hiring has been around the technology side of the business,” said ... Read More

New Mortgage Borrowers Take on Extra Debt

Consumers who apply for mortgages are much more likely to open new credit card accounts and take out auto loans than consumers overall, according to TransUnion, a firm that focuses on credit issues. A new study by TransUnion included 16.7 million consumers who paid off their mortgages and moved with new mortgages or refinanced their existing mortgages between the first quarter of 2013 and the second quarter of 2015. The study focused on borrowers with a VantageScore of ... 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