Tag: finance

While The PNC Financial Services Group Inc.’s mortgage earnings and originations weakened from a year earlier, third-party mortgage servicing has grown during the period.

In the three months ended Sept. 30, the Pittsburgh-based company earned over $1.5 billion before income taxes and non-controlling interests, according to its third-quarter earnings report.

Income improved compared to the same three-month period in 2016, when PNC earned $1.3 billion. Earnings also were up from nearly $1.5 billion the preceding quarter.

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From:: Financing

Among three third-party mortgage originators that are closing is an Ocwen Financial Corp. unit. Multiple credit unions failed over this past summer.

Last year, $2 billion of West Palm Beach, Florida-based Ocwen’s $5 billion in total mortgage originations was generated through the wholesale channel.

But with a disclosure earlier this week that it has decided to exit the wholesale forward lending business, Ocwen will potentially lose 40 percent of its annual production.

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From:: Financing

Mortgage earnings deteriorated at Wells Fargo & Co. While there was a modest quarter-over-quarter rise in home lending, current-quarter activity is likely down. Nonconforming assets grew.

Prior to income-tax expense, the San Francisco-based bank-holding company earned $6.9 billion during the three months that finished on Sept. 30 according to its third-quarter 2017 earnings report.

In addition to deteriorating from the $8.3 billion that was earned a year earlier, income was down compared to $8.1 billion during the prior three-month period.

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From:: Financing

Bank of America Corp.’s mortgage business contracted as repurchases and mortgage-servicing rights valuations drove mortgage earnings into the red.

In its third-quarter earnings report, the Charlotte, North Carolina-based financial institution disclosed income at the parent company before income taxes of $7.9 billion.

Although BofA’s earnings weren’t quite as good as $8.4 billion in the prior three-month period, results improved from the $7.3 billion earned one year prior.

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From:: Financing

Interest rates on residential loans turned higher this past week. The escalation came despite severe deterioration in monthly employment statistics.

Freddie Mac reported in its Primary Mortgage Market Survey for the week ended Oct. 12 that fixed interest rates on 30-year mortgages averaged 3.91 percent.

Long-term mortgage rates jumped 6 basis points from the preceding seven-day period. The year-over-year increase was more severe at 44 BPS.

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From:: Financing

Investors hungry for servicing have an opportunity to buy mortgage servicing rights on nearly $200 million in government-sponsored enterprise loans with a Golden State concentration.

The offering includes MSRs on 715 Fannie Mae A/A mortgages that have an aggregate unpaid principal balance of $188 million. All of the loans are fixed rate.

A 3.575 interest rate was reported on the loans on a weighted-average basis, while the service fee is 0.25 percent and the FICO score is 766. The retail channel share is 98.5 percent.

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From:: Financing

While company-wide earnings improved at Citigroup Inc., mortgage earnings deteriorated from a year ago. It was a similar story for home-lending activity, as the company continued to reduce its third-party servicing portfolio.

The New York-based financial conglomerate said in its third-quarter earnings report that income from continuing operations before income taxes was $6.0 billion. Earnings improved from $5.7 billion in the prior three-month period and $5.6 billion a year prior.

At $185 million during the three months ended Sept. 30, 2017, mortgage revenues were very similar to $188 million in the second quarter. A 39 percent drop in mortgage revenues, though, was recorded versus the third-quarter 2016.

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From:: Financing

Third-party mortgage servicing has been reduced 19 quarters in a row at JPMorgan Chase & Co., which now claims to be the biggest bank in spite of cutting branch count 13 consecutive quarters. Employee count has increased each of the past seven quarters, as earnings and residential loan originations were strong.

Chase revealed $9.6 billion in company-wide income before income-tax expense in its third-quarter earnings report, not much different than $9.7 billion the preceding quarter. There was, however, a year-over-year bump, with earnings improving from $8.9 billion in the same-three months last year.

While mortgage fees and related income at the New York-based firm rose to $428 million from $401 million in the three months ended June 30, they were way off from $624 million earned in the third-quarter 2016. Production revenue made up $158 million of first-quarter mortgage income, and servicing revenue accounted for the other $270 million.

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From:: Financing

Annual fiscal securitizations conducted on behalf of the Government National Mortgage Association increased, while the book of business continued to grow.

The unpaid principal balance of Ginnie Mae mortgage-backed securities ended September at $1.8842 trillion, according to monthly operational data.

The government-owned corporation’s total expanded from $1.8706 trillion at the conclusion of the preceding month and $1.7281 trillion as of the same date last year.

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From:: Financing

More than $3 billion in reperforming and non-performing government-sponsored enterprise mortgages are being marketed for sale to the highest bidder.

One of two transaction is an offering of roughly 9,900 reperforming loans that have a collective unpaid principal balance of $2.2 billion.

Reperforming loans were previously delinquent. But the mortgages are performing again due to the loans being brought current with and without modifications.

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From:: Financing