Flagstar Bancorp Mortgage Revenue Drop in Q1 221



Flagstar Bancorp Mortgage Banks’ revenue in the second quarter was down 26% year-on-year, 45% year-over-year due to increased profit margins and their service entitlements.

Bank located in Troy, Michigan. In the process of acquiring According to the New York Community Bancorp, total net income from mortgage origination and services for the quarter was $ 163 million, up from $ 227 million. In the first quarter $ 295 million in the second quarter of 2020.

However, the parent company also has a branch of the public bank. Mortgage warehouse In the second quarter, the securitization business posted a net profit of $ 147 million. This is relatively stable at $ 149 million in the first quarter. $ 116 million in the previous year.

“What is remarkable isSecuritization of 4 own brands During the quarter, we once again demonstrated the diversity of our mortgage business and the options it offers, ”said Alessandro DiNello, President and CEO, in a press release.

The profit margin on mortgage sales for the last period was 135 basis points, down from 184 basis points in the first quarter to 231 basis points in the third quarter of last year and 219 basis points in the second quarter of 2020. The squeeze in margin is the reason for the decline.

Principal debt in the second quarter was $ 12.8 billion, up from $ 13.8 billion in the quarter, but up from $ 12.2 billion in the prior year. However, the quarterly volume of the purchasing business was $ 5.6 billion, up from $ 4 billion in the first quarter and $ 4.4 billion in the second quarter of last year.

Corresponding mortgage acquisition activity was $ 7.4 billion in quarterly production, up from $ 6.6 billion in the prior year, unchanged from the previous three months. However, wholesale sales fell from $ 1.7 billion in the first quarter and $ 1.9 billion in the second quarter of 2020 to $ 1.1 billion.

Cumulative retail and direct sales to consumers were $ 4.3 billion, up from $ 4.6 billion in the second quarter but up from $ 3.7 billion in the prior year.

Flagstar recorded a net loss of $ 5 million in MSR, reflecting the amortization of the $ 8 million fair value of government-guaranteed loans repurchased during the quarter. Banks went bankrupt even in the first quarter of MSR, but lost $ 8 million a year ago.

As of June 30, banks offer $ 255.7 billion in services, of which $ 211.8 billion are ancillary services. A year ago, it offered $ 213.6 billion in services, of which $ 174.5 billion was ancillary services.

Warehouse loan commitments fell to $ 10.4 billion ($ 5.9 billion unpaid) on June 30, down from $ 10.7 billion ($ 6.6 billion unpaid) on March 31. On June 30, 2020, Flagstar expanded its warehouse loan by $ 7.9 billion, leaving $ 5.2 billion unpaid. In other words, the utilization rate was high.


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