home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Corporate Mortgage News
M e r g e r s, a c q u i s i t i o n s and private and public offerings. Other corporate activity including executive appointments, bankruptcies name changes.

Banks' Mortgage Assets Fall

FDIC quarterly report

June 19, 2007


photo of Coco Salazar

While earnings managed to edge up, mortgage assets continued to fall at commercial banks and thrifts insured by the Federal Deposit Insurance Corp.

In the first quarter, the institutions' earnings were $36.0 billion, up $0.6 billion from the linked three-month period, according to the first issue of the FDIC Quarterly. However, net income was $0.9 billion below the level earned a year ago and was largest annual quarterly decrease in six years.

"Higher expenses for credit losses at large banks and narrower net interest margins at smaller institutions posed challenges to earnings during the quarter," FDIC explained.

More than two of each three institutions reported lower net interest margins than a year ago, but only about 37 percent of all institutions reported higher provisions for loan losses. Although within institutions of over $10 billion in assets, almost three-quarters raised their loss provisions. The $9.2 billion set aside in loan loss provisions was slightly below that in the fourth quarter but the $3.2-billion year-over-year increase was the largest in five years. It was the fifth consecutive quarter in which provisions exceeded net charge-offs. For one- to four-family residential mortgages net charge-offs were up by $268 million or 93.2 percent over the year.

Real estate loans accounted for the largest increases in noncurrent loans, those 90 days or more past due or in nonaccrual status. Noncurrent residential mortgages increased by 7.3 percent or $1.7 billion. The percentage of noncurrent one- to four-family residential loans rose from 1.05% to 1.13% during the quarter -- the highest rate in almost 13 years -- and the percentage of noncurrent home equity lines was at 0.44 percent. The overall percentage of noncurrent loans at FDIC-insured commercial banks and thrifts was at 0.83 percent -- the highest level in two and a half years after rising by $4 billion during the quarter and moving up since a cyclical low of 0.70 percent in mid-2006.

Assets at federally-insured commercial banks and thrifts grew 1 percent during the quarter and almost 7 percent over the year, the second-smallest quarterly increase in three and a half years and smallest annual growth in four and a half years mainly due to real estate loans, according to the report. Residential mortgage assets fell -- by $6.5 billion from the prior three months -- for the first time in thirteen quarters, HELs dropped by $2.6 billion. There was a decline for the second quarter in a row in total mortgage assets, which consist of mortgage loans plus mortgage-backed securities, thereby "mortgage activity is no longer contributing to growth," the report indicated.

The report covered information reported by 7,380 commercial banks and 1,270 savings institutions.

Coco Salazar is an associate editor and staff writer for MortgageDaily.com.

e-mail: [email protected]

Servicing News | Servicer Ranking | Delinquency Statistics
Stories about mortgage servicers, delinquency and f o r e c l o s u r e s. Coverage of servicing lawsuits and loan servicing technology.

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders