Mortgage Banking Profitability

Browse articles from all of our Newsletters related to Mortgage Banking Profitability.

March 22, 2019 - Inside The GSEs

GSE Mortgage Buybacks Hit A Record Low Last Year

Mortgage sellers repurchased just $833.7 mil-lion of single-family loans from Fannie Mae and Freddie Mac mortgage-backed securities last year, according to a new Inside the GSEs analysis.

March 22, 2019 - Inside Mortgage Trends

Bank Repurchase Volume Falls to Record Low in 2018

Mortgage repurchases by banks and thrifts fell to $2.29 billion in 2018, the lowest annual total since institutions began reporting this activity on quarterly call reports in 2007. It would have been a lot lower without Bank of America. The North Carolina-based megabank reported $1.04 billion in mortgage repurchases last year, or 45.3% of the industry’s total. BofA did see a decline in repurchases: down 32.4% on a year-to-date basis ... [Includes one data chart]

March 22, 2019 - Inside Mortgage Trends

Concerns About Profit Margins Ease Somewhat

After more than a year of pessimism among many lenders regarding profit margins, the outlook is improving, according to a survey by Fannie Mae. The government-sponsored enterprise surveyed senior executives at 184 lenders in February. Some 28% reported that they expect profit margins to decrease in the second quarter. In previous survey results, 45% of lenders reported expecting lower profit margins for the first quarter of 2019 and a similar share expected lower profit margins ...

March 22, 2019 - Inside Mortgage Trends

Impac’s Shift Toward Non-QMs Prompts Turnover

Impac Mortgage Holdings is putting a strong emphasis on originating non-qualified mortgages as the product offers attractive margins. But the shift also has prompted large layoffs and employee turnover as non-QM volume hasn’t completely replaced production of conforming mortgages. Impac originated $1.30 billion of non-QMs in 2018, accounting for 33.9% of its total originations. In 2017, Impac produced $891.2 million of non-QM loans, accounting for 12.5% of ...

March 22, 2019 - Inside Mortgage Trends

Mortgage Income Clobbered From Both Sides in 4Q18

There was nowhere to hide in the fourth quarter of 2018 as mortgage banking income fell sharply both in loan production and servicing, according to a new Inside Mortgage Trends analysis of earnings reports from publicly held companies. The group of 13 lenders reported a combined $513.5 million in production-related income for the fourth quarter. That was down $302.8 million from the previous period and put year-to-date income on production and ... [Includes one data chart]

March 22, 2019 - Inside Mortgage Trends

4Q18 Income Down Sharply For Public Nonbank Lenders

Several publicly held nonbank lenders took a beating on servicing hedges and other factors during the fourth quarter of 2018, according to a new Inside Mortgage Trends analysis of earnings reports. Seven public firms reported a combined loss of $120.53 million on mortgage banking activity during the fourth quarter. An eighth nonbank, Ditech Financial, has not reported yearend earnings and entered bankruptcy protection for a second time ...[Includes one data chart]

March 15, 2019 - Inside MBS & ABS

Buyouts from Ginnie Mae Boost Supply of NPLs

Buyouts from Ginnie Mae MBS have replaced vintage subprime mortgages as a major source of nonperforming loans, according to industry participants.

March 11, 2019 - Inside the CFPB

Tiered Supervision of IMBs Advocated by Trade Groups

The CFPB should open up a policy discussion about a tiered supervision structure of smaller independent mortgage banks, according to industry trade groups.

March 8, 2019 - Inside Mortgage Trends

TPO Volume in Agency MBS Declined Sharply in 2018

Despite hefty declines in their sales volume last year, Wells Fargo and PennyMac continued to rank as the top sources of third-party originations in agency mortgage-backed securities. [Includes one data chart]

March 8, 2019 - Inside Mortgage Trends

Racial Gap in Housing Wealth Getting Deeper

A disparity between black and white homeowners regarding the value of their homes is making the racial wealth gap much worse, according to a new study from the Urban Institute.

March 8, 2019 - Inside Mortgage Trends

Consumer Experience Key to Lender Profitability

In a lackluster market amid rising interest rates and limited inventory, advisory firm Strategic Mortgage Finance Group has advice on how mortgage lenders can remain profitable.

March 8, 2019 - Inside Mortgage Trends

Industry Seeks Delay of Credit Loss Standard

Industry groups have once again requested federal regulators delay a new accounting standard for credit losses. The Current Expected Credit Loss standard is scheduled to be implemented on a phased-in basis beginning in January.

March 8, 2019 - Inside Mortgage Trends

Broker Business Gained Market Share in 2018

Retail mortgage lending remained the dominant originations channel in 2018, but it lost some luster to third-party production channels. [Includes two data charts]

February 28, 2019 - Inside Mortgage Finance

Mortgage Grapevine

Violation of borrowing pacts; a new strategy for TIAA...

February 22, 2019 - Inside Mortgage Trends

TIAA Exits Retail, Provident Says Goodbye, Period

As mortgage profits weaken, two banks that have had a foothold in residential finance for several decades are taking different paths. One, TIAA Bank, Jacksonville, FL, is exiting traditional retail but staying in the mortgage space. The other, Provident Savings Bank, Riverside, CA, is getting out entirely.

February 22, 2019 - Inside Mortgage Trends

Mortgage Banking Income Hits Post-Crisis Low in 4Q18

Commercial banks and savings institutions made money on their mortgage banking activity during the fourth quarter, but not that much. [Includes two data charts.]

February 22, 2019 - Inside Mortgage Trends

Buybacks of Fannie/Freddie Loans Hit Record Low in ’18

Mortgage lenders that deliver loans into Fannie Mae and Freddie Mac mortgage-backed securities continued to face relatively few repurchase demands from the two government-sponsored enterprises last year. [Includes three data charts.]

February 21, 2019 - Inside Mortgage Finance

Pershing Square’s GSE ‘Lottery Ticket’ Riding High

Pershing Square Holdings — the high-profile hedge fund managed by mega investor Bill Ackman — is sitting on a paper gain of 140.6% year-to-date on its investment in Fannie Mae common. Its holdings in Freddie Mac aren’t too far behind at 130.2%.

February 15, 2019 - Inside FHA/VA Lending

Around the Industry

GDP Projection for 1Q19 Down by $8 Billion Due to Shutdown.

February 15, 2019 - Inside MBS & ABS

Despite 4Q Slump, GSE 2018 Earnings Hit Six-Year High

Fannie Mae and Freddie Mac racked up $25.19 billion in combined net income in 2018, their most profitable year since 2013, when earnings were inflated by accounting rules for deferred tax assets. [Includes one data chart.]

February 14, 2019 - Inside Mortgage Finance

Ditech Files for Bankruptcy Once Again. A Sale Possible?

Fort Washington, PA-based Ditech Financial, the nation’s 15th largest servicer of home mortgages, is headed into bankruptcy for the second time in a little over a year. A sale is a possibility, too.

February 8, 2019 - Inside Mortgage Trends

Banks Report Sharp Drop in Mortgage Banking Income

Publicly-owned commercial banks and thrifts reported widespread declines in mortgage banking income during the fourth quarter, according to a new analysis by Inside Mortgage Trends. [Includes one data chart.]

February 8, 2019 - Inside MBS & ABS

Securitization Grapevine

Hyundai; AGNC Mortgage Management...

February 8, 2019 - Inside MBS & ABS

MBA Issues Primer for Smooth LIBOR Transition

The Mortgage Bankers Association has published a primer to help commercial and multifamily lenders in the impending transition away from the London Interbank Offered Rate to an alternative rate index.


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