BB&T Corporation, Winston-Salem, N.C., has lowered its earnings estimate for this year to reflect the impact that "fluctuating interest rates" have had on its mortgage operation. Management now expects earnings per share for 2004 to be $2.75 to $2.90 excluding the impact of merger-related charges. Previous guidance was $2.85 to $2.95. John Allison, BB&T's chairman and CEO, said, "fluctuations in interest rates are producing unexpected pressure on mortgage banking operations." Specifically, he said originations have been slower than expected in the first quarter, while falling rates have impaired the value of BB&T's mortgage servicing rights.
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The massive mortgage business saw a first quarter profit mitigated by nearly $300 million in hedging losses.
6h ago -
The Consumer Financial Protection Bureau has seen excessive property-inspection charges, fees that loan mods should eliminate and improper line-item labels.
10h ago -
Michael Tannenbaum, whose experience in the financial services industry spans over 15 years, has a track record of helping companies scale and grow.
April 24 -
A majority of consumers earning more than $100,000 annually said they were concerned about their own ability to purchase a home, demonstrating how affordability issues are impacting those at many socioeconomic levels, the University of Michigan study found.
April 24 -
The nonbank's results add to other indications that the first quarter's "higher for longer" rate scenario had an upside for efficient servicing operations.
April 24 -
The latest rate increases contributed to a 1% drop in purchases from the previous week and 15% annually, according to the Mortgage Bankers Association.
April 24