Mortgage Daily Logo

FHA Fundings Drag GMAC Business Lower

Mortgage News

During the past year, government originations tumbled as conforming activity increased at GMAC Financial Services. Income from mortgage operations saw a dramatic improvement. The company has virtually eliminated mortgages held-for-investment, and a name change is planned for next week.

First-quarter home loan production was $13.0 billion, earnings data released today indicated. Business tumbled from $17.6 billion three months earlier and edged down from $13.2 billion one year earlier.

Conforming loans represented $9.5 billion of the latest activity, 11 percent lower than the prior period but 11 percent higher than the first-quarter 2009. Government fundings were $3.1 billion, down more than half from the fourth quarter and one-third worse than a year ago. Prime non-conforming closings accounted for another $0.4 billion, up from less than $0.1 billion in the first quarter of last year.

The U.S. servicing portfolio was $349.0 billion on March 31, edging down from $349.8 billion at the end of last year. The portfolio was $385.9 billion 12 months earlier.

After selling $373 million in U.S. and U.K. whole loan pools, held-for-investment mortgages ended March at just $17 million, compared to $461 million on March 31, 2009.

Net income before income taxes for the mortgage operations improved to $0.2 billion from a $4.0 billion fourth-quarter loss and a $1.0 billion first-quarter 2009 loss. The improvement was attributed to “strategic actions taken by GMAC in the fourth quarter of 2009.”

The company said it continues to reduce risk in the mortgage business as it identifies “a viable long-term strategy” for the unit.

Pre-tax income for all of GMAC was an $0.6 billion profit, also a huge improvement from the $4.2 billion loss three months earlier and the $0.5 billion loss one year earlier.

It was the first profitable quarter for New York-based GMAC since the last quarter of 2008.

The report indicated that GMAC Inc. will change its name to Ally Financial Inc. on May 10. The move is a “strategic decision to implement a brand for the long-term where the trademark is company-owned.”

Related Posts

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

There is No Such Thing as a Free House …

Over the past several years, those who service loans in the State of Washington(1) have seen a dramatic rise in the number of lawsuits in which delinquent borrowers seek to quiet title to their homes on the grounds that lenders are barred from foreclosing based on...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

Mortgage Servicer Portfolios

servicing news | mortgages outstanding statistics | foreclosure news   Servicing Portfolios as of 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 Residential Servicing Portfolios by Servicer Last Updated December 14, 2018...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

Fannie Mae Profile

Last Updated December 27, 2018 7:38 PM Central   full list | other directories | bank search | SEC filings | execs | m&a | production   Government Takes Over Fannie, Freddie Sept. 8, 2008 The government has seized control of Fannie Mae and Freddie Mac. The move --...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

Freddie Mac Profile

Government Takes Over Fannie, Freddie Sept. 8, 2008 The government has seized control of Fannie Mae and Freddie Mac. The move -- which is likely to push mortgage rates lower and provide a sense of stability for the more than 10,000 employees at both companies -- is a...

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...

Newsletter

Don’t worry, we don’t spam