Thanks to a strong performance in its servicing business, Countrywide Financial Corp., Calabasas, Calif., earned $722 million in the second quarter, a 27% gain compared with earnings from a year earlier.Compared with those of the first quarter, earnings rose about 6%. A nationally chartered bank, a majority of CFC's income ($630 million) came from its mortgage banking operations. Its servicing business had pretax earnings of $279 million in the quarter, a 213% gain compared with those of the second quarter of 2005. Its production business had pretax earnings of $325 million in the quarter, a 21% drop from those of the second quarter of last year. Sandler O'Neill issued a report on CFC, noting that its production margin may have bottomed out. "The third quarter is typically the strongest quarter in the mortgage banking cycle," Sandler added. Despite the strong quarter, Countrywide's shares were trading down about $1 to $38.30 as of MortgageWire's deadline Tuesday. The company can be found online at http://www.countrywide.com.
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A federal judge in Texas dismissed the Consumer Financial Protection Bureau's medical debt rule and prohibited states from passing their own laws prohibiting medical debt on credit reports.
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Dr. Mark Calabria takes on the additional role of chief statistician of the United States; retired Ally Bank executive Diane Morais has joined First Citizens Bancshares' board of directors; MainStreet Bank has promoted Alex Vari to chief financial officer; and more in this week's banking news roundup.
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While refinances are behind the latest increases, the pace of purchase activity may be a stronger indicator of where the housing market sits.
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The share of economists expecting a September rate reduction grew in the July Wolters Kluwer survey, but the October or later percentage also increased.
July 11 -
Rising home prices and softening sales offer a mixed view of a market that some say is shifting to favor buyers.
July 11 -
The notes are backed by home improvement installment loans originated by approved dealers in Foundation Finance Company's network.
July 11