Get company-specific results on earnings, sales activity, MSRs, repurchases & more
Inside Mortgage Finance's quarterly Mortgage Profitability Report digs into the financial performance for hundreds of lenders, so you'll know what's contributing to — or detracting from — their bottom lines. Through charts and accompanying perspective, you'll be able to determine how profitable the mortgage business is, which parts of it are generating the most return, how the business is trending, and how well you're doing compared with everyone else. For example, in 4Q20:
Commercial banks and savings institutions reported $6.39 billion in income from mortgage banking, a 19.2% drop from a blockbuster third quarter. This brought year-to-date earnings to $22.52 billion, a 66.3% gain from 2019, making 2020 the industry's most profitable since mortgage banking churned out $25.75 billion back in 2013.
Most of the largest banks reported quarterly income declines along with increases on a year-to-date basis, including top-ranked JPMorgan Chase, which hauled in $3.53 billion in mortgage banking income for the year (a 52.0% increase from 2019) despite a 31.9% decline from 3Q to 4Q, and #2 U.S. Bank, with $1.71 billion in earnings from mortgage banking, more than double its income from 2019 but an 8.1% decline from the third quarter.
Servicing turned south again, as a group of 15 public companies posted a net aggregate loss of $326.3 million, following a $417.3 million profit in the third quarter. PennyMac posted the best result for the group, $42.0 million in net pretax income from servicing in the fourth quarter. New Residential had the worst outcome, a $141.8 million net loss that includes servicing revenue, MSR and servicer advances.
Banks reported repurchases of $505.6 million of single-family mortgages by their mortgage banking platforms. That was down 53.1% from the third quarter, when bank repurchases had spiked to $1.08 billion. Most of the third-quarter surge of bank repurchases came from three institutions: Wells Fargo, JPMorgan Chase and Popular, which reported a combined $633.0 million jump in repurchase volume from the second to the third quarter. But in the fourth quarter, those institutions reported a combined decline of $560.0 million.
Wells Fargo remained the top bank in servicing for others, but it reduced its portfolio by $62.1 billion during the quarterand by $216.1 billion over the full year. Second-ranked JPMorgan Chase reported a smaller $7.6 billion decline in the fourth quarter, though its portfolio shrank 14.1% from December 2019. Most of the other banks in the top 10 also allowed their SFO portfolios to contract, though two did report modest growth in their portfolios from the third to fourth quarter: PNC Bank (1.4%) and Citizens Bank (0.7%).
Mortgage Profitability Report has all the information you need to see where the market is going so you can get there with — or before — it. The report includes exhaustive lender-by-lender rankings of the latest mortgage-banking earnings and sales activity figures, as well as rankings showing the current state of lenders' repurchases and mortgage servicing rights assets. And in addition to the micro detail by lender, it provides marketwide analysis and additional profitability information on the industry's biggest players.
Bank Mortgage-Banking Earnings Net income results for all banks with more than $1 billion in assets (485 institutions in 4Q20) and the market.
Mortgage Earnings Snapshot Quarterly earnings for a selection of institutions based on earnings reports.
Bank Mortgage Sales Activity Mortgage sales results for the banking operations of all banks with more than $1 billion in assets (940 lenders) and the market.
Bank/Thrift Mortgage Repurchase/Indemnification Activity Ranking of banks and thrifts (150 institutions) by repurchase volume.
Bank Mortgage Servicing Rights Assets Unpaid principal balance of servicing for others and fair market value of MSRs for all banks with more than $1 billion in assets (849 institutions).
Get a firm handle on how well your own efforts are faring compared to the competition and the industry as a whole. The 4Q20 edition of Mortgage Profitability Report is available now; order a subscription to also get the next three quarterly reports as soon as they're available.
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