Homes in the Las Vegas area sold at the fastest pace for an April in seven years due, in large, to investor and cash buying...
Lender Flagstar Bancorp is reportedly considering the sale of $70 billion in mortgage servicing rights. Bloomberg reported on...
JPMorgan Chase ($53.63 0.61%) reported higher profits from its mortgage business due mostly to a major government refinancing program and slower repurchases.
The bank reported $604 million in profits from mortgage origination and servicing during the second quarter, compared to a $649 million loss in the year-ago period.
Including repurchase losses, revenue on its mortgage production line grew 62% from the year-ago quarter to $1.6 billion. Chase said it saw more gains from its involvement in the Home Affordable Refinancing Program.
The bank originated $43.9 billion in new home loans in the second quarter, up 29% from one year ago. Its retail channel netted a record $26.1 billion in new originations.
Its liability for repurchases dropped $216 million to less than $3.3 billion as of March 31, according to its financial filing. Chase also narrowed losses in the quarter to roughly $10 million from buying back faulty mortgages from investors.
"The net repurchase number should be approximately zero for the next quarter," said Chief Financial Officer Doug Braunstein. "The real difference is our cure rates. As these demands go deeper into the securities they're taking more mortgages that have been paying longer, and we're decreasing the amount of demands."
Unresolved repurchase requests from the government-sponsored enterprises dropped to $1.6 billion.
Braunstein added the bank saw "a modest increase" in demands from private-label securities investors.
"Much of that will make its way through litigation," Braunstein said.
Don’t miss out: get HW delivered via email