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Inside Mortgage Trends

August 5, 2016

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Banks Post Drop in Mortgage-Banking Profits in 2Q16. Blame It on the Big Guys

Banks reported a drop in mortgage-banking income during the second quarter of 2016, according to a new Inside Mortgage Trends analysis of earnings reports from 26 major public companies. But virtually all of the decline came from the four too-big-to-fail banks with over $1 trillion in assets, while regionals posted a substantial increase in mortgage-banking profits. As a group, the 26 banks earned $3.12 billion from mortgage banking during ... [Includes one data chart] Read More

Mortgage Lenders Work to Prevent Cyber Attacks

Lenders and servicers are seen as prime targets for cyber criminals that focus on Social Security numbers and bank accounts. Bill Beckmann, president and CEO of MERSCORP, said, “There’s almost nothing more robust” than the information mortgage companies have regarding individual borrowers. Beckmann and Mitch Tanenbaum, a partner at CyberCecurity, a consultant to financial service companies, addressed cyber security issues facing the mortgage industry ... Read More

PE Firm Sees Upside in Hispanic Mortgage Market

Panorama Point Partners this summer participated in what it calls a “significant” capital raise for Alterra Home Loans, a Las Vegas-based nonbank started by Hispanic-Americans that’s been on a production tear the past four years, growing originations by upwards of 250 percent every 12 months. If all goes well, AHL hopes to fund $1.3 billion of residential mortgages in 2016, 70 percent of it to minorities, a large chunk of them Hispanics. In short, Alterra sees gold in ... Read More

Lenders Welcome Tech Innovation, to a Point

Most lenders welcome mortgage technology and innovation, but they are divided when it comes to embracing Uber-like industry-wide disruptions, according to new research from Fannie Mae’s Economic & Strategic Research Group. “Today’s consumers access myriad products and services via digital platforms that make it more efficient, simple and pleasant to conduct their business,” said Katrina Jones, vice president of single-family business solutions at ... Read More

Lenders See Growth in Corporate Culture

Officials at a number of lenders that have significantly increased their business in recent years point to efforts regarding corporate culture as a key factor in the companies’ success. Kurt Reisig, the founder of American Pacific Mortgage, a retail-only lender, said that since starting an effort to focus on corporate culture, APM has doubled its origination volume in the past two years and went from 800 employees to more than 2,000. “Culture eats strategy for lunch every day,” ... Read More

GSE Credit Box Shows Little Change in 2Q16

The dramatic expansion of the credit box for loans sold to Fannie Mae and Freddie Mac in the first quarter of this year held steady in the second quarter, according to a new Inside Mortgage Trends analysis of mortgage-backed securities data. In the first quarter, the share of purchase loans sold to the government-sponsored enterprises with credit scores ranging from 620 to 699 jumped by nearly 7 percentage points to 21.4 percent. The low-score share ... [Includes one data chart] Read More

Lenders Should Prepare for Significant Changes

In the next year or so, a changing environment will remain the norm in the mortgage industry, where participants can expect impending interest-rate increases, new product offerings, increasing competition, new servicing business models, and continued regulatory scrutiny, according to a new PricewaterhouseCoopers (PwC) study. To address flat production volume and shrinking margins, lenders will need to cross-sell products, and concentrate on reducing ... Read More

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