Judge Approves BofA MBS Settlement
A federal judge has approved a settlement between Bank of America Corp. in investors of residential mortgage-backed securities.
REIT Acquires Small Servicer
A real estate investment trust has acquired a mortgage servicer out of Texas with a servicing portfolio less than $10 billion.
Fifth Third, Former CFO Accused of Improper Accounting
Cincinnati-based Fifth Third Bank has been accused of using improper accounting on commercial real estate loans during the depths of the financial crisis.
Impac Selling Servicing Subsidiary
Impac Mortgage Holdings Inc. is selling a mortgage servicing subsidiary in a move that is expected to free up cash to grow its own servicing portfolio.
Growing Servicing Staffs Cut Into Profits
Small and mid-sized mortgage servicers have recently grown their servicing portfolios. But staffing expanded on a quarter-over-quarter basis, reducing efficiency and cutting into per-loan profits.
Per Loan Profits Plunge for Mortgage Lenders
As residential loan originations slid in the third quarter, the bottom line per loan plummeted due in large part to rising per-loan employee costs and dwindling secondary marketing gains. Still, per-loan revenue move higher.
Servicing Income Mitigates Loss of Refinance Business
Falling refinance originations impacted the bottom line at independent mortgage bankers. But some lenders mitigated the impact with their servicing businesses.
Mortgage Holdings Grow at Credit Unions
The amount of first mortgages owned by credit unions grew in the third quarter, but the number of credit unions was down.
Legal Uncertainty Weighs on BofA Shares
Shares of Bank of America Corp. have come a long way since falling below $3 during the depths of the financial crisis. But the price of BofA's common stock remains well below its pre-crisis high as future litigation costs remain uncertain.
Big Banks Manage Huge Legal Costs
Although the nation's big banks have already incurred more than $100 billion in costs for repurchases and mortgage-related litigation, more such expense could be ahead. But the group should be able to withstand the hit.
