Cyprexx: Discrimination charges “frivolous”

Cyprexx: Discrimination charges “frivolous”

Fannie Mae contractor responds to charges from National Fair Housing Alliance

Hey CNBC, shut up about millennials already

Your advice is patronizing, contradictory and just plain wrong

Morgan Stanley finally pays $275 million for subprime RMBS fraud

SEC charged company with misrepresenting loans
W S
Investments

Fifth Third's profit impacted by reps and warrants reserve

Fifth Third Bancorp (FITB) cut into a portion of its profits in the third quarter to cover expenses tied to representation and warranty issues or putback risk.

The bank noted in its third-quarter earnings that its profit was partly impacted by $24 million in charges attributed to an increase in the company's reps and warrants reserve.

Banks like Fifth Third create reserves specifically to brace for the potential of buy-back risk.

The firm's profit fell to $354 million, or 38 cents a share, for the period. That is down from earnings of $376 million, or 40 cents a share, in the second quarter. It's also lower than the $373 million, or 40 cents, recorded a year earlier. 

Still, the company's CEO Kevin Kabat said the third quarter brought stronger mortgage banking revenue.

"We had success across our commercial bank and consumer lending businesses, with double-digit growth in corporate banking revenue, up 16% year-over-year, and mortgage banking revenue, up 13% year-over-year."

Mortgage loans increased 16% from last year, Kabat said, while commercial and industrial loans grew by 15% over last year.

kpanchuk@housingwire.com

Recent Articles by Kerri Panchuk

Comments powered by Disqus