Bank Profitability

Browse articles from all of our Newsletters related to Bank Profitability.

July 13, 2018 - Inside Nonconforming Markets

Reg Relief to Cause a Cascade of Looser Standards?

A provision involving community banks and qualified mortgages in recently enacted regulatory relief legislation could prompt community banks and nonbanks to loosen underwriting standards for non-agency mortgages, according to Moody’s Investors Service. Banks with less than $10.0 billion in assets can receive QM treatment for certain loans that would otherwise be non-QMs if the banks hold the mortgages in portfolio acording to the Economic Growth, Regulatory Relief and ...

June 29, 2018 - Inside FHA/VA Lending

Ginnie Mae Unveils Plan for Digital Mortgages; E-Loans on the Horizon

Ginnie Mae will be working with FHA, VA and the U.S. Department of Agriculture to standardize origination policies and requirements for digital mortgages as it moves into the digital age of its secondary market business. Ginnie will coordinate with the agencies while developing technical standards for electronic closings, digital mortgage instruments and electronic vaults. All this work is part of the agency’s three-year strategy, Ginnie Mae 2020, to modernize its mortgage-backed securities program and platform, strengthen its counterparty risk management capability, and explore new ways to lower or eliminate risk from the system. As part of the modernization effort, Ginnie envisions a process that would allow it to accept digital promissory notes and other digitized loan files as eligible collateral for its MBS. It would encompass loan application through securitization. The plan calls for gradual implementation of ...

June 29, 2018 - Inside Nonconforming Markets

ARM Originations Decline in First Quarter

Originations of adjustable-rate mortgages declined in the first quarter of 2018 from the previous period, according to a new ranking and analysis by Inside Nonconforming Markets. ARM production slowed even with a rise in interest rates, and the products don’t appear to be popular with borrowers seeking purchase mortgages. An estimated $44.0 billion of ARMs were originated in the first three months of the year, down 20.0 percent from the fourth ... [Includes one data chart]

June 29, 2018 - Inside Nonconforming Markets

Banks Boost First-Lien Holdings In 1Q, Slight Drop at Wells Fargo

Holdings of first-lien residential mortgages by banks and thrifts increased in the first quarter of 2018, according to a new ranking and analysis by Inside Nonconforming Markets. Banks and thrifts held $2.025 trillion of first-lien home loans as of the end of the first quarter, up 0.5 percent from December 2017 and up 4.8 percent from March of last year. Trends varied somewhat among the 10 largest holders of first liens, with some posting large gains on an ... [Includes one data chart]

June 22, 2018 - Inside Mortgage Trends

Bank Loan Sales Down Sharply in 1Q18

Secondary mortgage market activity cooled dramatically in the first quarter of 2018, according to bank call report data analyzed by Inside Mortgage Trends. [Includes one data chart.]

June 15, 2018 - Inside Nonconforming Markets

Accounting Change Could Impact Jumbo Pricing

A pending change to accounting standards could change the way banks price jumbo mortgages, according to industry analysts. Beginning in 2020, many banks will have to change their accounting methods to include a “current expected credit loss model.” The adoption timeline was recently set by federal banking regulators. The CECL model forces banks to make projections for lifetime losses on loans they hold and potentially increase reserves relating to the projected losses ...


With mortgage production down noticeably this year from 2017, how many lenders might disappear via M&A or failure during the next 12 months?

10% or less. It’s not that bad out there.
11% to 25%. It’s a challenging market.
25% to 40%. It’s going to be very ugly.
No opinion.

vote to see results