The next wave of servicing regulation is coming – Are you ready?

Join this webinar to learn what servicers need to know about recent and upcoming servicing compliance regulations and strategies experts are implementing to prepare for servicing regulatory audits.

Inside Look: RealTrends 2021 Brokerage Compensation Study

Steve Murray, senior advisor to RealTrends, gives an exclusive first look at the 2021 RealTrends Brokerage Compensation Report.

Logan Mohtashami on trends in forbearance exits

In this episode of HousingWire Daily, Logan Mohtashami discusses several hot topics in the housing market, including recent trends in forbearance exits and future homebuyer demand in the midst of inventory shortages.

How lenders can prepare for increasing regulatory pressures

As compliance becomes an increased focal point for mortgage lenders and investors, staying ahead of state and federal regulations can be the difference between a flourishing business and one mired in fines.

InvestmentsPolitics & Money

OCC worried banks are padding profits

Comptroller of the Currency Thomas Curry is concerned banks are padding profits by releasing too much of their reserves for loan losses.

Collective bank earnings increased higher than the year before for 12 straight quarters now, he told a Wall Street lobbying group the Financial Services Roundtable this week. This shows a finance industry recovering well from the crisis, but he said banks are adding provisions to their reserves at historically low levels, and it remains below what losses they’re charging off.

“I worry that too much of the increase in reported profits is being driven by loan loss reserve releases,” Curry said in his speech.

Banks earned a collective $34.5 billion in the second quarter, up 17% from one year ago, according to the Federal Deposit Insurance Corp.

At the same time, loss provisions declined by more than 26% to just over $14 billion while operating revenue increased less than a full percentage point, FDIC data also shows.

He added allowances could return to historic lows in “just a few years,” while banks and thrifts are still taking “elevated levels of risk.”

“In the U.S., the housing market is soft and unemployment remains stubbornly high,” Curry said. “The economy is taking much longer to emerge from this downturn than from past recessions. With so much uncertainty here and abroad, the industry needs to maintain strong reserves.”

jprior@housingwire.com

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