5th 3rd Mortgage Revenues Sink, Originations Drop

As quarterly home-lending volume declined at Fifth Third Bancorp, so did mortgage revenues and company-wide headcount. However, residential servicing and commercial real estate assets grew.

Cincinnati-based Fifth Third disclosed in its third-quarter earnings report that it generated income before income taxes totaling $0.512 billion during the period.

Earnings at the bank-holding company plummeted from $1.489 billion during the same three months last year. Income also receded from the preceding three-month period, when it was $0.693 billion.


Source: Mortgage Daily

East Coast Mortgages Borrowers Complain Most

Across the country, mortgage complaints accounted for a smaller share of overall complaints last year than in 2016. States where the share of mortgage complaints are highest are all on the East Coast.

Of all complaints filed by consumers with the Bureau of Consumer Financial Protection during 2017, just 12 percent were filed against mortgage companies.

That’s significant because the preceding year, the bureau reports that complaints filed against mortgage companies made up 18 percent of the annual total.


Source: Mortgage Daily

Mortgage Revenues Sink at Flagstar

Revenues at Flagstar Bancorp Inc.’s home-lending business sank. But the financial institution has grown its mortgage asset and servicing portfolios over the past year.

In the three months ended Sept. 30, income before income taxes worked out to $60 million, the bank-holding company revealed in its third-quarter earnings report.

Income at Troy, Michigan-based Flagstar was no different than in the same three months last year. Earnings were off just $2 million compared to the preceding period.


Source: Mortgage Daily

Mortgage Earnings Fall at BBT, Originations Ease

As home-lending volume slowed at BB&T Corp., mortgage earnings tumbled. But the financial institution grew both its mortgage investments and servicing portfolio.

For the three months that finished on Sept. 30, BB&T’s income before income taxes was $1.0 billion, according to its third-quarter earnings results.

Income at the Winston-Salem, North Carolina-based bank-holding company ascended from $0.9 billion the same three months a year ago. A tiny improvement was reported versus the preceding period.


Source: Mortgage Daily

Refinances Wipe Out Weekly Purchase Gains

A nice up tick in purchase financing activity was wiped out by a weekly decrease in refinance business. Similarly, an increase in government volume was more than offset by a drop in conventional activity.

An indicator of upcoming originations, the U.S. Mortgage Market Index from Mortgage Daily, was 113 during the seven days ended Friday. The index is determined based on average per-user rate locks by OpenClose clients.

Compared to the preceding week, the MMI slipped more than a percent. No adjustments are made for seasonal factors to the index, which has plummeted 24 percent versus the same seven days last year.


Source: Mortgage Daily

Quicken Pushes Servicing Portfolio Past $300 Bil

For the first time since it began reporting mortgage servicing data six years ago, Quicken Loans Inc. has pushed the servicing portfolio past $300 billion. Originations and staffing, meanwhile, held steady.

The aggregate unpaid principal balance of residential loans that were serviced by the Detroit-based mortgage banking organization as of Sept. 30 was $306.0 billion.

It was the first time that Quicken, which provided the data as part of the Mortgage Daily Third Quarter 2018 Mortgage Origination Survey, pushed the portfolio past $300 billion.


Source: Mortgage Daily

Retail Drives Down SunTrust's Home Lending

A sharp decline in quarterly retail originations at SunTrust Banks Inc. drove overall home lending lower as mortgage earnings sank. But the size of the financial institution’s mortgage servicing portfolio has increased over the past year.

Atlanta-based SunTrust revealed in its third-quarter earnings report that it generated $849 million in income before the provision for income taxes.

Results improved from the same three-month period in 2017, when pre-tax earnings were $765 million. But the bank-holding company fell short of its prior-quarter income of $895 million.


Source: Mortgage Daily

Universal American Whistleblower to Receive $2 Mil

A whistleblower will receive nearly $2 million for her role in a lawsuit alleging Universal American Mortgage Company LLC approved loans for government insurance that didn’t qualify.

As a mortgagee with direct endorsement authority from the Federal Housing Administration, Miami-based Universal American was empowered to approve FHA loans itself.

The lender, a subsidiary of home builder Lennar Corp., is required to follow FHA program rules to ensure proper underwriting, certification and quality control to prevent and correct underwriting deficiencies.


Source: Mortgage Daily

FHA Endorsements Edge Higher, Book of Biz Grows

Monthly residential government-insured mortgage production was nudged up, though commercial real estate endorsements plunged. The book of business continued to grow.

At the end of August, the Federal Housing Administration had insurance in force on 8,622,052 residential loans for $1.3376 trillion based on monthly operating data.

Making up the most-recent total were $1.1924 trillion in single-family loans, $0.1442 trillion in home-equity conversion mortgages, and $0.0010 trillion in Title I loans.


Source: Mortgage Daily

KeyCorp Mortgage Investments Yet to Pay Off

Investments in mortgage origination staff and a financial institution with a mortgage business have yet to pay off for the parent of KeyBank.

In 2016, KeyCorp completed its purchase of First Niagara Financial Group. The purchase gave the Cleveland-based company a strong foothold in the mortgage business.

Following the acquisition, KeyBank began offering mortgages across its entire footprint, growing the mortgage loan officer staff to nearly 300 in the process.


Source: Mortgage Daily