Mortgage Slump's Full Toll on Small Banks Revealed -- But Fixes
Remain Elusive
Mortgage banking income at banks with less than $20 billion of assets fell an average of 21 percent from the second quarter and 27 percent from a year earlier, according to new data from Keefe, Bruyette & Woods. The firm said activity is expected to slow even more in coming quarters as a spike in long-term interest rates continues to restrain refinance activity, and as more banks grapple with the Consumer Financial Protection Bureau's qualified-mortgage rule. The slowdown in mortgage revenue was a punch in the gut for banks that are trying to boost fee income, and was a major reason that non-interest income in the third quarter fell 9 percent from the second quarter and 11 percent from a year earlier, according to American Banker research of 350 banks' results.
From "Mortgage Slump's Full Toll on Small Banks Revealed -- But Fixes Remain Elusive"
American Banker (11/06/13) Stewart, Jackie
Mortgage banking income at banks with less than $20 billion of assets fell an average of 21 percent from the second quarter and 27 percent from a year earlier, according to new data from Keefe, Bruyette & Woods. The firm said activity is expected to slow even more in coming quarters as a spike in long-term interest rates continues to restrain refinance activity, and as more banks grapple with the Consumer Financial Protection Bureau's qualified-mortgage rule. The slowdown in mortgage revenue was a punch in the gut for banks that are trying to boost fee income, and was a major reason that non-interest income in the third quarter fell 9 percent from the second quarter and 11 percent from a year earlier, according to American Banker research of 350 banks' results.
From "Mortgage Slump's Full Toll on Small Banks Revealed -- But Fixes Remain Elusive"
American Banker (11/06/13) Stewart, Jackie
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