Quarterly Earnings
By Carrie Bay | 05/09/2012
Fannie Mae said Wednesday that it brought in $2.7 billion dollars in net income during the first quarter of this year, and for the first time since it was seized by the government in September of 2008, the company does not need a draw of taxpayer funds from Treasury to get out of the red. Fannie Mae says its improving numbers can be traced to lower credit-related expenses as the decline in home prices slowed and the company shed some of its REO holdings.
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By Carrie Bay | 05/03/2012
Freddie Mac reported net income of $577 million for the first quarter of 2012. That combined with $1.21 billion in unrealized gains on securities investments resulted in comprehensive income of $1.79 billion. The GSE's finances didn't sit in the black for very long, however. After a $1.8 billion dividend payment to its primary shareholder, the U.S. Treasury, Freddie's net worth was a deficit of $18 million. Looking at the GSE's loss mitigation numbers, short sales almost equaled the number of loan modifications during the first quarter.
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By Esther Cho | 04/23/2012
MGIC Investment Corp. reported a drop in delinquencies for the first 2012 quarter ending March 31, 2012, with the percentage of delinquent loans, excluding bulk loans, at 12.84 percent, compared with 13.79 percent at the end of the 2011 fourth quarter and 13.87 percent at the end of the first quarter a year ago. When including bulk loans, the percentage of loans that were delinquent at the end of the 2012 first quarter was 15.09 percent, compared to 16.11 percent at the end of the previous quarter and 16.35 percent at the end of the first quarter in 2011.
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By Esther Cho | 04/17/2012
With their 2012 first quarter earnings, JPMorgan and Wells Fargo revealed the reclassification of $1.6 billion and $1.7 billion, respectively, in second lien mortgages as nonperforming loans even though they are not yet delinquent. Fitch Ratings said it believes many U.S. banks are likely to follow suit, and that it does "not view this as a material shift in the performance of these loans." Both banks cited regulatory guidance as reasons for the reclassification. The reclassified loans are second liens associated with delinquent first liens. In cases involving delinquent loans, second liens are written off before a first lien takes any losses.
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By Esther Cho | 04/16/2012
Citigroup reported a 2 percent decline for the 2012 first quarter, with a net income of $2.93 billion, or $0.95 cents per share, compared to $2.99 billion, or $0.99 cents per share, the same quarter a year ago. The 2.93 billion includes a negative $1.3 billion due to accounting adjustments for the value of Citi's debt.
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By Esther Cho | 04/13/2012
Amid improvements in the mortgage sector, Wells Fargo & Company reported a net income of $4.2 billion, with earnings per share at $0.75 for the 2012 first quarter on Friday. Last year during the same quarter, the bank reported a net income of $3.8 billion, or $0.67 per share. The San Francisco-based bank also reported mortgage banking noninterest income at $2.9 billion, up $506 million from fourth quarter 2011. Mortgage originations increased as well, with the bank reporting $129 billion in originations, up from $120 billion reported in the fourth quarter.
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By Esther Cho | 04/13/2012
JPMorgan Chase, which surpassed Bank of America as the largest bank in terms of assets in October 2011, reported a net income $5.4 billion, with earnings per share at $1.31. The reported net income and earnings per share for the 2011 first quarter was $5.6 billion and $1.28, respectively. The bank saw a significant boost with mortgage production-related revenue, which was reported at $1.6 billion, an increase of $722 million, or 80 percent, from the year before. At $59.9 billion, mortgage loan application volumes increased 33 percent compared to the prior year, and 14 percent from the previous quarter, mostly due to heavy refinancing activity.
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By Esther Cho | 03/09/2012
Freddie Mac reported a gain in the fourth quarter and less losses overall for the year 2011 compared to the previous year, according to the GSE's fourth quarter and year 2011 report released today. Freddie Mac reported a net income of $619 million for the 2011 fourth quarter. During the third quarter ending September 30, 2011, a net loss of $4.4 billion was reported. Freddie Mac will request $146 million from the U.S. Treasury for the company's fourth quarter net worth deficit.
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By Krista Franks | 01/19/2012
After a net loss of $2.2 billion in 2010, Bank of America reported net income of $1.4 billion, $0.01 per diluted share, for the year in 2011, according to the company's earnings report released Thursday. On a fully taxable-equivalent basis, net interest expense declined 15 percent for the year arriving at $94.4 billion.
BofA's mortgage servicing portfolio is on the decline. The $1.8 trillion portfolio reported at the end of the year is down from $1.9 trillion in the previous quarter and $2.1 trillion a year ago.
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By Carrie Bay | 01/17/2012
Citigroup's fourth-quarter results fell far short of analysts' expectations, despite a 40 percent drop in credit losses from the previous year. The company reported net income of $1.2 billion, or 38 cents per share, for the fourth quarter of 2011. Analysts were looking for 50 cents per share. Company officials told investors that legacy mortgage issues are the single largest source of risk facing the U.S. banking industry. Citi saw loan buybacks go up 80 percent in 2011 as it stockpiled reserves for mortgage litigation costs.
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