As waning refinances negatively impacted overall single-family loan originations, quarterly production profits at independent home lenders sank.
Net production income at independent mortgage banks and mortgage subsidiaries of chartered banks was 12 basis points in the fourth-quarter 2017.
Earnings plunged from 42 BPS the prior period and sank compared to the same-three months during 2016, when income worked out to 24 BPS.
Although quarterly and annual home lending retreated at Lake Michigan Credit Union, the servicing portfolio and mortgage staffing both expanded.
As last year concluded, the Grand Rapids, Michigan-based financial institution serviced 61,290 single-family loans with a collective unpaid principal balance of $9.739 billion.
Lake Michigan provided the data, in addition to other operational metrics, as part of the Mortgage Daily Fourth Quarter 2017 Mortgage Origination Survey.
While monthly interest rates on residential loans headed north, weekly rates held steady. But stock market volatility could have fixed rates falling in next week’s report.
Ellie Mae Inc. reported in its February 2018 Origination Insight Report that 30-year note rates on home loans that closed last month averaged 4.48 percent.
Rates jumped from January, when the average was 4.33 percent. A similar increase was recorded versus February 2017, when the average was 4.36 percent.
In order to fund planned technology investments in the Federal Housing Administration, a per-loan fee on newly originated mortgages is being proposed.
In prepared testimony, Department of Housing and Urban Development Secretary Dr. Ben S. Carson talked about the outdated technology at FHA.
Carson, who was scheduled to speak Thursday before the Senate Committee on Banking, Housing and Urban Affairs, noted that FHA is operating on a mainframe that is over four decades old.
Economists at the Federal Home Loan Mortgage Corp. have raised the outlook for refinances and lowered expected purchase financing for this year — dragging down the overall forecast.
During the first-three months of this year, Freddie Mac predicts that industry-wide single-family loan originations will amount to $325 billion.
U.S. mortgage lending is then expected to jump to $460 billion in the second quarter and climb to $495 billion during the following three-month period.
Mortgage delinquency retreated last month thanks to a foreclosure inventory that has plummeted to the lowest level since the Great Recession.
Residential loans that were at least 30 days past due or in the foreclosure inventory numbered 2.528 million as of the conclusion of February.
The total included 2.198 million mortgages at least 30 days past due and another 331,000 loans in the foreclosure inventory, a new post-recession low.
Mortgage servicing rights on nearly $2 billion in home loans backed by the Federal National Mortgage Association have been put up for auction.
The offering includes MSRs on 7,488 single-family Fannie Mae A/A loans that had a collective unpaid principal balance of $1.847 billion as of Feb. 28.
Loans secured by California properties make up 23 percent of the mortgages, and another 12 percent are in Texas. No other states have a double-digit share.
An expansion sought for a mortgage facility in the Twin Cities would enable Wells Fargo & Co. to house more than an additional thousand employees there.
At an existing Wells Fargo Home Mortgage facility in Minneapolis, the financial services firm wants to build a six-story parking ramp.
The campus is already home to approximately 3,750 mortgage employees, while around 18,000 Wells Fargo employees are located in the Minneapolis metropolitan area.
A jump in the sale of pre-owned homes last month in the West led an overall national gain. In the Northeast, however, there was a significant slump amid brutal weather conditions.
During February, the sale of 319,000 existing U.S. homes was completed. The total reflects the sale of single family homes, townhomes, condominiums and co-operatives.
Last month’s real estate activity brought to 632,000 the number of existing home sales that have closed during the first two months of this year.
Although there was a modest rise in purchase-money applications, a drop in refinances drove down overall mortgage applications. Refinance share was the thinnest it’s been in a decade.
In the seven days that concluded on March 16, the Market Composite Index retreated from one week previous by more than a seasonally adjusted 1 percent.
Even without considering seasonal factors, the index, which is a measure of retail residential loan applications, still moved lower by 1 percent.