Banks reported a significant decline in the volume of mortgage repurchases and indemnifications they recorded during the first quarter of 2011, but buybacks clearly continue to weigh on mortgage banking profitability. According to a new call report analysis by Inside Mortgage Trends, banks reported a total of $3.83 billion in mortgage repurchases and indemnifications during the first quarter. That was down 19.2 percent from the previous three-month period.The buyback problem has clearly improved since the nine months between the... [includes one data chart and one graph]

A steep decline in loan origination activity dragged mortgage banking income during the first quarter of 2011 to its lowest level in over two years, according to a new Inside Mortgage Trends analysis. Earnings reports filed by 21 major mortgage lenders showed aggregate mortgage banking income of $3.097 billion for... [Includes one data chart and one graph]

The average mortgage banking business reported increased profitability in the fourth quarter of last year, but 2010 didn’t match the industry’s success back in 2009, according to the latest Mortgage Bankers Performance Report from the Mortgage Bankers Association. The average firm participating in the MBA survey reported...

The Treasury Department this week announced that it is withholding servicer incentive payments for the three largest lenders in the industry following compliance reviews that found them needing significant improvement in their Home Affordable Modification Program activity. The three servicers – Bank of America, JPMorgan Chase and Wells Fargo – each typically collect about $7 million a month in servicer compensation for non-agency mortgages, according to an Inside Mortgage Trends analysis of Treasury data. Treasury found a fourth servicer – Ocwen Financial – was also in need of...[contains one data chart]

Using consumer behavior analytics, FICO said it has developed a method to profile so-called “strategic defaulters” in order to determine who is most likely to try to skip out on their mortgage loans. The credit-assessment firm, best known for its FICO credit score, said its research improves on...

Even though only 14 servicers were ordered by federal regulators to change some of their practices, there is a general understanding that the rest of the industry will also have to adhere to some of the new standards just to keep up and avoid future problems, according to experts at a webinar hosted this week by...

Even though the collapse in the mortgage market took down some bigger lenders structured as real estate investment trusts, the surviving REITs have emerged stronger and some are edging back into originations. Market capitalization for the sector has surged, from about $1.6 billion in 2000 to $36.1 billion (residential) as of May 31, 2011, according to a new report by analysts at Keefe Bruyette & Woods. But there have been some pretty big sinkholes along the way, with Thornburg Mortgage and New Century forced to shutter their operations. Their demise represented a combined loss of...

The two leading accounting standards-setting bodies have different approaches when it comes to how best to analyze the effectiveness of a mortgage lending or other financial hedging strategy. And as they seek to improve, simplify and harmonize their approaches, the mortgage industry has come out in support of...

Shellpoint Partners, a specialty finance company, has completed the acquisition of New Penn Financial to provide residential mortgage products to creditworthy borrowers who are locked out of the market. Acquisition cost and other details of the transaction, which was announced June 2, were not disclosed. The New York-based Shellpoint Partners said acquiring New Penn will provide additional liquidity and options to creditworthy borrowers who do not fit the existing underwriting criteria for government-backed mortgages, including jumbo loan borrowers and...

The quality of mortgages has been exceptional in the handful of non-agency mortgage securities issued over the past few years, but industry analysts question the sustainability of such high standards on a long-term basis as the mortgage market responds to change. “Recently originated prime jumbo loans reviewed by Fitch appear to be...