First Commonwealth Financial Corp., Indiana, Pa., has announced a repositioning of the mortgage-backed securities portfolio of its subsidiary First Commonwealth Bank to reduce its exposure to interest rate risk.The bank sold $130.7 million of MBS with high premium carrying values, resulting in an after-tax loss of $3.6 million, First Commonwealth said. The average yield of the sold securities was 3.38%, and the average life was approximately 2.9 years. "The proceeds were reinvested in more current coupon mortgage-backed securities with an average yield of 5.3% and an average life of 3.7 years," the company said. First Commonwealth also reported the completion of a previously announced sale of five branch offices and one drive-through location to Clearfield Bank and Trust Co.
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The massive mortgage business saw a first quarter profit mitigated by nearly $300 million in hedging losses.
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The Consumer Financial Protection Bureau has seen excessive property-inspection charges, fees that loan mods should eliminate and improper line-item labels.
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Michael Tannenbaum, whose experience in the financial services industry spans over 15 years, has a track record of helping companies scale and grow.
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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.
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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.
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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