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Big Lenders Win from Both Sides.
The third quarter marked another period of record results for the largest publicly traded mortgage lenders. But this time, it wasn't just loan origination that fueled strength in the mortgage sector.
A rare confluence of events - namely left over refinancing volume from the second quarter coupled with rising interest rates - allowed the nation's biggest lenders to achieve strong gains in the value of their mortgage servicing rights while still benefiting from big loan origination volumes in the third quarter. And suddenly top mortgage firms looked like the Kansas City Chiefs - strong on offense, strong on defense.
Rather than hedging each other, loan origination and servicing both added to the bottom line.
It's not clear how long the "perfect storm" of strong origination volume and improving values for mortgage servicing rights will last, however. With interest rates currently about 80 basis points above their low point in June, refinancing volume is rapidly slowing.
But most lenders still anticipate strong fourth-quarter lending volume, and they still have plenty of room to increase servicing values when they report fourth-quarter results.
Countrywide Financial Corporation reported that it's third quarter earnings grew to $1.1 billion in the third-quarter, more than four times the amount earned in the same period last year.
In a reversal from other recent quarters, Countrywide benefited from "impairment recovery."
- MSR Impairment Recovery for bank.
- News wire article from: Mortgage Line August 9, 2004 700+ words
...helped BOK Financial Corp. here grow net income by 12% in the second quarter. The company reported net income of $45.5 million, or $0.68 per share, in the quarter. That's up from $40.8 million, or $0.61 per share, in the same...
- First Defiance Announces Third Quarter Earnings; HIGHLIGHTS.
- Press release article from: PR Newswire October 20, 2003 700+ words
...rates during the third quarter has resulted in a substantial...000 for the 2003 fourth quarter. We expect that the...Mortgage Servicing Impairment Recovery Impacts Results The results for the 2003 third quarter were favorably impacted...
- Huntington Bancshares Incorporated; * Reports 2003 Fourth Quarter And Full Year...
- Press release article from: PR Newswire January 16, 2004 700+ words
...sequential third quarter performance reflected...rights (MSR) impairment recovery, compared with...05 per share) impairment recovery in the third quarter. * $99 million...costs in future quarters, but resulted...
- Soaring Price Doesn't Diminish Analyst's Enthusiasm for CFC.
- Magazine article from: National Mortgage News October 20, 2003 700+ words
...reflects expected MSR impairment recovery in the third quarter, Mr. McMahon said...said. In the second quarter alone, Countrywide...likely engage in modest impairment recovery in the third quarter and report more recoveries...
- Countrywide Reports 2005 Fourth Quarter and Full-Year Results.
- Press release article from: PR Newswire January 31, 2006 700+ words
...on sale, but in the fourth quarter this was hindered by pricing...basis points for the fourth quarter of 2005, an improvement of 25 basis points from the fourth quarter of 2004. The improvement...basis point improvement in impairment/recovery of the MSRs and other retained...
- 1st Source Corporation Announces 2nd Quarter Earnings, Dividend Announced.
- Press release article from: Business Wire July 28, 2005 700+ words
...decrease in the second quarter of 2005 was a decline...million in the second quarter of 2005, compared...mortgage servicing rights impairment recovery of $3.78 million...million in the second quarter of 2005 compared to...share for the first two quarters of 2005 was $0.72...
- Huntington Bancshares Incorporated Reports 2004 Third Quarter Results.
- Press release article from: PR Newswire October 15, 2004 700+ words
...securities in the second quarter. * 0.30% annualized...from 0.23% in the second quarter. * 0.36% period-end...9 0.01 * MSR temporary impairment recovery 10.4 0.03 * Investment...1 0.04 * MSR temporary impairment recovery 17.8 0.05 * Investment...
- Countrywide Reports Record Third Quarter Results; - Diluted EPS Advances 181...
- Press release article from: PR Newswire October 23, 2003 700+ words
...employees. "The quarter was highlighted...benefited from net impairment recovery of MSRs and other...modestly from last quarter. "To summarize, the third quarter benefited from...as well as net impairment recovery that equated...
- Huntington Bancshares Incorporated Reports 2004 First Quarter Results; - Net...
- Press release article from: PR Newswire April 15, 2004 700+ words
...last five quarters for a total...The first quarter sale resulted...temporary impairment recovery 3.5 2...2003 First Quarter - GAAP earnings...temporary impairment recovery in the fourth quarter. -- $15...
- MFB Corp. Announces Fourth Quarter and Annual Earnings and Quarterly Dividend...
- Press release article from: Business Wire October 23, 2003 700+ words
...Net income for the quarter ended September 30...share, without the impairment recovery. In addition, Mr...Common Stock for the quarter ended September 30...mortgage servicing impairment recovery) increased from $951,000 for the fourth quarter last year to $1...
Source: HighBeam Research, Big Lenders Win from Both Sides.