Tag Archives: Credit Quality

For mortgage originations, things are beginning to look a lot like they did before the bubble—at least when it comes to credit quality and risk level.

What factors have led to improved credit performance of jumbo residential mortgage-backed securities?

All mortgage originations, measured by loan count, jumped up to 1.48 million in Q2, which was an increase of 2.4 percent from the previous quarter and of 40 percent from the same quarter a year earlier.

U.S. private mortgage insurers are expected to continue benefiting from economic growth, good house price affordability, and strong mortgage credit quality. According to Moody's Investors Service, PMIs have been positioned in a favorable housing finance environment that will allow them to reap the benefits in the industry, even if the Federal Reserve increases interest rates.

Wells Fargo reported strong financials for the second quarter, driven in part by an uptick in mortgage lending and ongoing improvements in credit quality. The megabank reported $5.7 billion in net income for the quarter, up 4 percent over $5.5 billion a year prior. For the year's first half, Wells Fargo took in $11.6 billion in net income, up nearly $1 billion compared to the same period in 2013.