As the fourth-quarter earnings start to pour in, the true extent of the TRID impact on each individual company is coming to light. For some banks, it was just a dent in the grand scheme of things, but that’s not the case for Flagstar.
JPMorgan Chase kicked off earnings season early Thursday morning, reporting a 10% increase in net income for the fourth quarter of 2015. Mortgage banking didn’t fair as well, with its net income falling 21% to $266 million.
Ambac Financial Group’s net income fell in the fourth quarter 2013 to $68.6 million, or $1.49 per share, from $143.6 million, or 47 cents per share, in 2012, as earnings were impacted by current market challenges.
Stonegate Mortgage not only overcame the challenging market conditions during the second half of 2013 but also posted a strong increase in originations and its servicing portfolio due to several strategic acquisitions.
First American Financial Corporation’s total revenue for the fourth quarter of 2013 hit $1.2 billion, a decline of 4% compared to a year prior as it deals with a drop-off in refinance activity and closed title orders falling to the lowest level of the year.
Ally Financial officially exited the mortgage business by the end of 2013 but not without incurring significant losses. Ally recorded a net income of $104 million for the fourth quarter of 2013, a giant drop down from a net income of $1.4 billion for the fourth quarter of 2012.
Sometimes offshoring sounds like a bad word. In reality, offshore mortgage servicing simply means using remote staff, usually to take advantage of lower labor and overhead costs and round-the-clock staffing availability. But legitimate questions remain. In the midst of increasing compliance pressures, is offshoring a sound strategy for mortgage servicers looking to stay competitive, or a fast track to dissatisfied customers and trouble with the CFPB?
Houses that have been rehabbed in the recovery project are now being sold as quickly as they are completed, and the profit on each house goes right into rehabbing the next one. In the past two years, the company has rehabbed and sold 58 homes, and has plans to do 200 more.
The fate of the Fannie and Freddie investors is not our concern. We are concerned about what happens to communities. And what is happening right now is that the future ability of working class families to obtain responsible home loans is in serious jeopardy.