Banking

Bank of Botetourt in Buchanan, Va., said Thursday it has opened a mortgage division to pursue unmet demand for home loans in southwestern Virginia.

Strong demand for rentals will keep pace with new construction over the next few years, the government-sponsored enterprise says.

Redwood Trust said it will stop originating commercial mortgages for securitization and focus solely on investing in bonds backed by commercial mortgages originated by others.

The price of the loans underlying commercial mortgage-backed securities declined 210 basis points during 2015, amid a broad rise in interest rates, according to DebtX.

Funding needed to construct houses is fairly plentiful, but homebuilders are still having trouble lining up financing to purchase and develop land. As a result, buildable lots are in short supply — and far more expensive.

Hotel property owners will discover that interest rates have climbed, if they try to refinance loans this year, Fitch Ratings said.

A number of bankers used quarterly earnings calls to assure investors that they are carefully monitoring their exposure to commercial real estate at a time when regulators are expressed concern about eroding underwriting standards.

Financial companies from Quicken Loans to SoFi will be advertising in Sunday's game — a rare sight in recent years — despite the estimate $5 million price tag.

Morgan Stanley will pay $63 million to settle a series of government lawsuits claiming the bank misrepresented securities it sold to banks that later failed.

The near future may find more banks ceasing to originate residential mortgages in an effort to stop the slide in stock prices.

CU Companies on Monday said it finished 2015 with "significant growth" in its mortgage lending partnerships.

Loan originations for commercial and multifamily properties climbed in the fourth quarter compared to last year, the Mortgage Bankers Association said.

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Fourth-quarter profit improved at Investors Bancorp, as the Short Hills, N.J., company originated more multifamily, business and commercial real estate loans

TFS Financial in Cleveland reported a higher fourth-quarter profit, citing a $1 million negative loan-loss provision.

The Department of Housing and Urban Development is reducing the mortgage insurance premiums it charges on Federal Housing Administration multifamily loans to encourage the renovation of affordable housing units and promote energy-efficient upgrades.

Umpqua Holdings in Portland, Ore., posted stronger quarterly earnings because of an increase in mortgage banking fees and lower costs.

John Kanas, BankUnited's CEO, said the business never turned a profit, and there were no indications that it would. The company, meanwhile, remains committed to other residential lending operations while focusing on expanding its other businesses across Florida.

Credit unions' share of the mortgage origination market has climbed steadily since the financial crisis. The sector expects to build on that momentum in 2016, even as significant headwinds loom.

Barclays Plc is exiting residential mortgage and commercial mortgage backed securities trading and asset-backed derivative in the U.S., according to a memo seen by Bloomberg. Operations will be focused on origination-led ABS and primary CMBS.