Per the FDIC, commercial banks and savings institutions insured by them “reported an aggregate profit of $29 billion in the first quarter of 2011, an $11.6 billion improvement (66.5%) from the $17.4 billion in net income the industry reported in 1Q2010. This is the seventh consecutive quarter of year-over-year earnings growth, although it is the
Jumbo Mortgages
Per the FDIC, commercial banks and savings institutions insured by them “reported an aggregate profit of $29 billion in the first quarter of 2011, an $11.6 billion improvement (66.5%) from the $17.4 billion in net income the industry reported in 1Q2010. This is the seventh consecutive quarter of year-over-year earnings growth, although it is the
Google has built built out its mortgage rate searches by launching a comparison tool for consumers. Lenders who want to be in searches must pay for the privilege. More Jumbo News Here is some company news of note. Springleaf, an offshoot of American General Finance, is planning to raise $500 million for nonconforming/non-agency loan financing.
Rates remain near 2011 lows for the same reasons discussed last Thursday’s market recap: questionable economic recovery. Below is a summary and rate outlook for next week, plus I address panic about lower loan limits effective October 1. Since the New York Times published Fed Retreat on Bigger Loans Rattles Housing on May 10, I’ve
Rates remain near 2011 lows for the same reasons discussed last Thursday’s market recap: questionable economic recovery. Below is a summary and rate outlook for next week, plus I address panic about lower loan limits effective October 1. Since the New York Times published Fed Retreat on Bigger Loans Rattles Housing on May 10, I’ve
It’s almost a certainty that the super-conforming loan level in the higher-priced areas will indeed drop to $625,500 from $729,750 on October 1. Here are new loan limit memos from Fannie Mae and FHFA, and here’s an an MSNBC story on jumbo loan implications. Aventur Partners & Aventur Mortgage Capital are turning some heads in
When it comes to powerful women, how does the FDIC’s Sheila Bair—our nation’s top bank regulator—stack up against Lady Gaga or Katie Couric? When it comes to powerful banks, how do they rank for first quarter production? The big four banks originated a combined $186 billion in home loans, down 33% from $281 billion home
Jumbo mortgage volume is very dependent on location. So what are borrowers in high cost areas thinking when it comes to obtaining a jumbo loan? Linda Stern of Reuters reminds us that conforming loan limit caps for high cost areas will be reduced from $729,750 to $625,500 effective October 1, and says that some borrowers
Merrill Lynch/Banc of America sent out a list of recent REIT filings, which continue at a record pace. Last week I was on a panel at a conference in California focused on the future of jumbo lending, and residential mortgage REIT’s may figure prominently in that. REIT’s clearly have become, with their leverage of 5×1,
In stark contrast to the last installment in our series, a grim post Fannie/Freddie world is predicted by Mad Hedge Fund Trader. Click image for info on who wrote the full post, and his key excerpts with future home price and mortgage rate estimates are below. Like all market views, the author’s points are worth
FHA Commissioner David Stevens resigned Thursday and will vacate his post end-of-April. Former mortgage banker Stevens stepped in July 2009 and helmed the FHA during a tricky time: FHA-insured home loans were jolted back into relevance when Congress drastically increased FHA loan limits to (regional caps of) $729,750. But this increase happened in a crisis
In the latest update on our series about a post-Fannie/Freddie lending world, we strongly recommend this post from NakedCapitalism: GSE 2.0 Scare Tactics: False Claim That No Government Guarantee = No 30yr Mortgage. Below is an excerpt about rates for non-Fannie/Freddie (aka jumbo) mortgages, and this follows our Part 1 and Part 2 discussions of
What Loans Are In A Jumbo Mortgage Bond? Details of the latest Redwood Trust March 1st deal are emerging. The $290 million residential MBS are backed by 303 loans, roughly 2/3 from First Republic Bank and the rest by PHH Mortgage. The average loan size is $977,000 with a mix of 30-yr fixed rate and
Currently 95% of home loans are controlled by the government using Fannie Mae, Freddie Mac, and FHA, but U.S. Congress is reviewing 3 options to overhaul home financing in this country. Below we examine how this will materially change loans and rates available to you in the future. This is part 2 in a series,
The jumbo market is making baby steps. Redwood Trust Inc. is marketing a $280 million residential mortgage-backed security, the first private deal of 2011, backed by a mix of fixed-rate and adjustable-rate mortgages. According to news on the issue, the average loan size is $978,000 and the average FICO score is 775 – pretty similar
In the coming weeks, we’ll be doing a series on Jumbo mortgages. And don’t let the terminology fool you. Today jumbo mortgages are for loans above max government-backed caps of $729,750. But as the politicians begin plans to wind down government support, their first big step will be to reducing government-backed loan caps. So a
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