Impac’s earnings plummeted from last year and even last quarter, but the company isn’t worried, and even feels that it had a strong start to the year. In this exclusive interview with HousingWire they explain why.
Mortgage banking net revenue was up 7% to $1.9 billion, which the bank's earning statement attributes to "higher MSR risk management results and strong loan growth, partially offset by lower servicing revenue."
Originations decreased 48% from the first quarter of 2013, down to $353.1 million. Impac attributes most of that to the sale of their brick and mortar branches at the end of last year, which accounts for $180 million of the decline.
Zillow first-quarter earnings reflect the strong year it had traffic-wise, breaking records in both March and April. The company's first-quarter revenue hit $66.2 million, up 70% from $39 million for the same period a year ago.
Saddled with legacy systems and burdened with changing regulations, the mortgage industry has been slow to adopt digitization compared to many other industries. Now, however, the industry must provide more transparency to regulators and satisfy consumers while managing tighter margins. In this perfect storm, there’s only one lifeboat — a digital process.
Has the Great Recession launched a new era of renting versus buying that will eventually result in a nation where more people rent their homes than purchase them? Or is the increase in renters these days due to an “over-correction” in the market? According to the latest “State of the Nation’s Housing” report from Harvard’s Joint Center for Housing Studies, the U.S., in less than a decade, lost all its homeownership gains of the last 20 years.
Armed with an overall measure of housing market performance relative to long-term trend; an accompanying metric explaining whether that market is overheated or not; and importantly a way to attribute deviations in home prices precisely to selected market variables, market participants would be in a better position to take precautionary actions to limit their exposure in highly volatile markets.