CUNA News Now

CUNA News Now - Market Filed on 2009-11-02, published the first business day after.

News of the Competition

MADISON, Wis. (11/3/09)

Independent U.S. mortgage bankers and subsidiaries made an average profit of $1,358 on each loan they originated in the second quarter of 2009--up from an average profit of $1,088 per loan, according to the Mortgage Bankers Association's (MBA) most recent Quarterly Mortgage Bankers Performance Report. The report provides performance measures for independent mortgage banks, and subsidiaries of banks, thrifts and hedge funds. "The refinance boom continued in the second quarter of 2009," said Marina Walsh, MBA's associate vice president of industry analysis. "The big increase in production volume allowed lenders to spread their fixed costs over a larger number of loans, thus increasing net profits. At the same time, purchases picked up as homebuyers with good credit took advantage of low interest rates. Not only do we see an uptick in average borrower FICO, but we see pull-through rates at close to 73% in the second quarter from about 67% in the first quarter. These factors contributed to the further drop in production operating expenses per loan." For MBA Study Shows Continued Profits For Independent Mortgage Bankers and Subsidiaries, use the link ...
Federal bank regulators closed nine more U.S. banks Friday and appointed the Federal Deposit Insurance Corp. (FDIC) as receiver. U.S. Bank of Minneapolis would assume the banks' deposits, FDIC said. The nine banks are owned by parent company FBOP Corp. of Oak Park, Ill. The most recent closures bring the tally of failed U.S. banks this year to 115. As of Sept. 30, the nine banks had combined assets of $19.4 billion and deposits of $15.4 billion, FDIC said. The closures will cost the deposit insurance fund an estimated $2.5 billion, FDIC added (Triangle Business Journal Nov. 2 and MarketWatch Oct. 30) ...
In a final move to restructure and keep its doors open, CIT Group Inc. Sunday filed for bankruptcy protection. CIT needs to maintain its customer base as it tries to rehabilitate itself under finance Chapter 11 protection, analysts said. The lender to nearly one million small and midsize businesses obtained support from roughly 90% of voting debt holders for a prepackaged reorganization plan. The plan could allow CIT to move rapidly through Chapter 11 and emerge with a new business model by the end of 2009, analysts said. The plan is designed to allow bondholders to exchange their debt for new debt that matures later--and almost all the equity--in a reorganized CIT, analysts said (The Wall Street Journal Nov. 2) ...