by Bill McBride on 7/12/2013 08:47:00 AM
Friday, July 12, 2013
A few excerpts from the JPMorgan investor presentation (Q2 results):
Mortgage Production pretax income of $582mm, down $349mm YoY, reflecting lower margins and higher expense, partially offset by higher volumes and lower repurchase lossesClick on graph for larger image.
Mortgage originations of $49.0B, up 12% YoY and down 7% QoQ
Purchase originations of $17.4B, up 50% YoY and 44% QoQ
If charge-offs and delinquencies continue to trend down, there will be continued reserve reductions
Realized repurchase losses may be offset by reserve reductions based on current trends
If primary mortgage rates remain at or above current levels, refinance volumes and margins will be under pressure and Mortgage Production profitability will be challenged
This graph is from the JPMorgan presentation this morning. The good news is mortgage delinquencies are trending down, and purchases originations are up sharply year-over-year.
However the refinance volumes and margins will probably fall off a cliff in Q3.
Posted by Bill McBride on 7/12/2013 08:47:00 AM