Franklin Bank Corp., a thrift holding company based in Houston, has reported that its performance in the fourth quarter was adversely affected by a $5.8 million nonperforming mortgage banker finance loan.The company did not identify the borrower, which it said has ceased operations and is under investigation by federal authorities for possible fraud and other claims. Franklin added that the loan is "potentially collateralized by single-family residential mortgage loans." It set aside a reserve of $4.4 million, or $0.13 per share, to cover potential losses. Still, Franklin posted net income of $26.3 million ($1.13 per share) for the year and $4.7 million ($0.19 per share) for the fourth quarter. Net of tax, the reserve had an impact of $2.8 million on Franklin's earnings.
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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.
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The top five producers had an average dollar volume of VA and USDA loans of more than $35 million in 2023.
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The JPMorgan Chase CEO took aim Tuesday at the proposed Basel III endgame rules, hindrances to mergers and bureaucratic burdens. "I would love to have a more productive relationship with regulators, but I think it takes conversation," Dimon said.
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While income decreased from the fourth quarter, it accelerated on an annual basis across NVR's building and lending units.
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Many legal experts think the Supreme Court will rule in favor of the Consumer Financial Protection Bureau in a case challenging its funding. Such a ruling would unleash a flurry of litigation that has been on hold pending the outcome of the constitutional challenge.
April 23