Mortgage Banking Profitability

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

January 11, 2019 - Inside Mortgage Trends

TMS Sells Two Channels, Will Focus on Servicing

The Money Source Inc., Melville, NY, is exiting the retail and wholesale channels to focus its resources on growing its servicing business and correspondent platform. In an interview with Inside Mortgage Trends, TMS President Ali Vafai noted that AmeriSave Mortgage Corp., Atlanta, bought the retail platform with the wholesale division landing elsewhere. The buyer of the latter has yet to be revealed and negotiations are continuing, said Vafai. No purchase price was disclosed on ...

January 11, 2019 - Inside Mortgage Trends

Just How Hungry Might Mr. Cooper Get?

With the ink still dry on the January calendar, Mr. Cooper said it would buy Seterus and its $48.0 billion servicing platform. Now comes the big question: Which firm or portfolio is next on its buy list? As Inside Mortgage Trends went to press this week, several large bulk packages of mortgage servicing rights were ready to hit the auction market, including two that are north of $10 billion. The Seterus sale was announced on Jan. 3. Investment bankers immediately started speculating ...

January 11, 2019 - Inside Mortgage Trends

Bank & Thrift Mortgage Repurchases Up in 3Q18

Mortgage repurchases by banks and thrifts took an unexpected turn higher in the third quarter of 2018, according to an Inside Mortgage Trends analysis of call report data. The banking industry reported $585.5 million in residential mortgage repurchases or indemnifications during the July-September cycle, a 38.5 percent spike from the previous quarter. The long-term trend still holds to a downward path. Year-to-date, banks and thrifts ... [Includes one data chart]

January 11, 2019 - Inside MBS & ABS

Hedging Losses Likely for Fannie & Freddie in 4Q

Fannie Mae and Freddie Mac, scheduled to report fourth-quarter results in early February, are likely to once again show strong earnings, but the black ink likely will pale a bit from the $6.7 billion they posted (combined) in the third quarter.

January 10, 2019 - Inside Mortgage Finance

Mortgage Collectives Boost Membership in 2018

Memberships in mortgage collectives increased in 2018, despite a tough operating environment, as the firms offered various benefits to lenders.

January 4, 2019 - Inside MBS & ABS

New Residential’s Stock Swoon – the Ditech Effect?

Analysts and investors are keeping a close eye on New Residential Investment Corp. these days, not because of bond market and interest rate fluctuations but because of its close ties to ailing Ditech Financial.

December 21, 2018 - Inside Mortgage Trends

Texas Capital’s Warehouse Business is Doing Well

For a company that’s coming off two back-to-back quarters of strong earnings, Texas Capital Bancshares, Dallas, is in a curious place: Its stock value continues to suffer mightily and its competitors in the warehouse sector believe its pricing is just too cutthroat to make sense. As Inside Mortgage Trends went to press late this week, TCBI’s common was trading at $50.17, a nick above its recent 52-week low of $49.34. Its high for the year is $103.05, which translates into a discount from ...

December 21, 2018 - Inside Mortgage Trends

GSE Buyback Activity Down to a Whisper

Fannie Mae and Freddie Mac sellers had to repurchase just $173.34 million of home loans during the third quarter of 2018 due to defects in the origination process, according to a new analysis by Inside Mortgage Trends. It was the lowest quarterly buyback total since the two government-sponsored enterprises began filing repurchase activity disclosures with the Securities and Exchange Commission in early 2012. There was, however, a 12.9 percent increase ... [Includes two data charts]

December 21, 2018 - Inside Mortgage Trends

Production-Related Activity Saw Profit Boost in 3Q18 Despite Lending Slowdown

Mortgage lending and secondary market activity generated a modest increase in earnings for a diverse group of publicly held companies, according to a new Inside Mortgage Trends analysis of earnings reports. At the same time, servicing income was down substantially. The 13 companies included in the roundup reported a combined $816.3 million in income from production-related activity during the third quarter. That was up 2.8 percent from the ... [Includes one data chart]

December 7, 2018 - Inside Mortgage Trends

Mortgage Banking Profits Squeezed in 3Q18

Mortgage banking profits eroded during the third quarter of 2018 as the industry continued to wrestle with overcapacity and sluggish origination volume. According to the Mortgage Bankers Association’s latest quarterly performance report, the average mortgage banking operation generated $946,000 in pretax income during the July-September cycle, a 31.6 percent decline from the previous quarter. Third-quarter profits were still somewhat stronger than those earned in late 2017 and early this year ...

December 7, 2018 - Inside Mortgage Trends

LO ‘Recruiting Season’ in a Softer Market

Thanksgiving to early spring is known as “LO recruiting season” in some corners of the industry. And in a softer origination market, that theoretically means mortgage executives can reduce compensation packages for loan originator sales staff. Not necessarily. Yes, originations are on a downward trend, but some entrepreneurial-minded CEOs might argue that in a tough market top-performing loan officers are worth their weight in gold. Included in that camp is Paul Rozo, CEO of ...


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