Posted by FGX/NJ on 4/13/13 1:35pm
Msg #465549
NY Times today on mortgages
Wall Street knew the craze wouldn’t last.
The nation’s biggest banks, capitalizing on government efforts to bolster the housing market, have raked in handsome mortgage profits of late. On Friday, that started to change.
Wells Fargo, the nation’s largest home lender, disclosed that it originated fewer home loans and recorded lower mortgage banking income in the first quarter of 2013. JPMorgan Chase, the biggest bank by assets, reported limited appetite for new mortgages and a drop in mortgage banking income.
Article ToolsFacebookSaveTwitterE-mailGoogle+PrintSharePermalink.Since the 2008 financial crisis, the banks’ mortgage business had hinged on government intervention rather than fresh demand from consumers. When the Federal Reserve cut interest rates in recent years, it spurred millions of borrowers to refinance their home loans to reduce costs.
Now, as mortgage rates inch upward from their lows late last year and refinancing enthusiasm wanes, the pipeline of borrowers is drying up.
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| Reply by JanetK_CA on 4/13/13 2:40pm
Msg #465552
"...the pipeline of borrowers is drying up."
This shouldn't come as a surprise to anyone who has been watching the economy and our industry - and reading this forum for a while. It's exactly what I've been trying to warn people about for a couple of years now, but on a regular basis, I still see posts that make me think that lots of readers here don't get this.
Again, not trying to be Henny Penny and not saying the sky is falling, just saying that forewarned is forearmed. This may not be the time to quit your day job, if you have one, or to jump into this field with both feet if you have no related background. This is likely to increase the downward pressure on fees across the board, as companies are potentially competing for less and less business. If you succumb to that pressure, you may be cutting your profit to the bone - or worse.
| Reply by 101livescan on 4/13/13 3:10pm
Msg #465556
Yes, things seem to slowing up, that's what I'm hearing. I've been busy, but who knows how long that will last. I observed a slow down with four of my biggest clients this past week.
Also, I would be very careful in making sure no one owes you for more than a couple of signings before you take on more assignments with them. Make sure they aren't into you for too much money. I'm hearing people are owed $1000's and are 30-45-60 days outstanding. That's way too much money to leave on the table, folks.
| Reply by anotaryinva on 4/13/13 5:17pm
Msg #465575
This from the WashPost
http://www.washingtonpost.com/business/economy/is-the-party-over-for-mortgage-lenders/2013/04/12/49723526-a375-11e2-be47-b44febada3a8_story.html
| Reply by ME/NJ on 4/13/13 5:45pm
Msg #465577
If not for 2 clients my last 2 months would of sucked. All my other clients I don't hear from till EOM . EOM does not make a whole month in my books. Maybe time to update resumes and get ready again. I don't see the later part of 2013 and 2014 to be good for us.
| Reply by ToniK on 4/13/13 6:49pm
Msg #465582
THese articles ONLY list wo mortgage companies
I havent done a Chase loan in I dont know how long (aside from I hate doing them) but most of my refinances are with mortgage brokers and smaller community banks. BO's tell me that their current lender (the big wigs) would not give them the best lowest rate and they went through a mortgage broker or smaller bank which ended up selling back to the big wigs!!!
This whole month has been mostly Quicken loans which a recent article was releases saying they took over a larger market share.
This is from the Washington Post article posted in this thread:
"The figures, however, aren’t a perfect measure for the health of the housing market. The two banks saw mortgage revenues fall partly because competition increased, squeezing profit margins. In addition, the record low cost of making loans — spurred by stimulus efforts by the Federal Reserve — have started to rise again."
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