Mb Fininancial Exiting The National Mortgage Business

[timd354]

MB Financial, which is a large national lender (6th largest wholesale mortgage volume - 22nd overall largest mortgage volume) has decided to exit the national mortgage business, citing the dynamics of the highly competitive mortgage industry, including recent very low origination margins.

http://www.crainsdetroit.com/articl...nd-mortgage-business-cut-495-jobs-in-michigan

This seems to me to be a case of another bank deciding that the very thin margins in the mortgage business are not worth the regulatory and market risks and is another sign that the shift of mortgage volume from banks to private, non-bank affiliated mortgage companies such as Quicken is continuing unabated with 5 of the top 10 mortgage lenders by volume now being non-bank owned mortgage companies

 

[Renee Healion]

So where does that end up--with only community banks and large non-bank mtg companies? There seems to be no middle.

 

[timd354]

So where does that end up--with only community banks and large non-bank mtg companies? There seems to be no middle.

No, some of the large national and regional banks will stay in the mortgage business although some of them will not stay in the business nationally, but will limit their mortgage business to their banking footprint (which is what MB Financial is going to do). The really big deal about all of this is that an ever increasing share of mortgage business is now originated by non-bank lenders and non-bank lenders are not as tightly regulated as banks. This is one of the unintended consequences of the regulatory changes made after the 2007-08 debacle.

 

[gregb]

https://www.washingtonpost.com/real...d3fa950f2fd_story.html?utm_term=.dbe1478c123b

 

[Renee Healion]

Who gets hurt in the next crash?

 

[Randolph Kinney]

The pressure is on to reduce cost to improve margins. Of course the lender wants a $50 appraisal.

 

[Randolph Kinney]

Who gets hurt in the next crash?

Mainly the GSEs, FHA and VA.

 

[CCAAMO]

To bad, they were a good client (as was Taylor Cole who MB bought out). They paid a good fee with minimal interference.

 

[Terrel L. Shields]

The really big deal about all of this is that an ever increasing share of mortgage business is now originated by non-bank lenders and non-bank lenders are not as tightly regulated as banks. This is

Non-bank lenders will demand to be bailed out, FED will be terrified not to. So the next crisis is beginning to develop. We desperately need a constitutional amendment requiring the execution of all COO, CFO, CEO, and board members of any company who causes a financial crisis.

 

[Eli]

MB Financial, which is a large national lender (6th largest wholesale mortgage volume - 22nd overall largest mortgage volume) has decided to exit the national mortgage business, citing the dynamics of the highly competitive mortgage industry, including recent very low origination margins.

http://www.crainsdetroit.com/articl...nd-mortgage-business-cut-495-jobs-in-michigan

This seems to me to be a case of another bank deciding that the very thin margins in the mortgage business are not worth the regulatory and market risks and is another sign that the shift of mortgage volume from banks to private, non-bank affiliated mortgage companies such as Quicken is continuing unabated with 5 of the top 10 mortgage lenders by volume now being non-bank owned mortgage companies

Why would anybody want to regulate lenders?

That is crazy as hell, don’t you think? Lol

Need to shift to that middle man now.

You don’t like laws and regulations do you? Lol

Who regulates you? What benefits do you get from whomever regulates you or institutions you benefit from?