slide1 l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
MBA 2006 Non-Prime Lending Conference Issues and Trends in the Non-Prime Market May 22, 2006 Marina Walsh MBA Research PowerPoint Presentation
Download Presentation
MBA 2006 Non-Prime Lending Conference Issues and Trends in the Non-Prime Market May 22, 2006 Marina Walsh MBA Research

Loading in 2 Seconds...

play fullscreen
1 / 11

MBA 2006 Non-Prime Lending Conference Issues and Trends in the Non-Prime Market May 22, 2006 Marina Walsh MBA Research - PowerPoint PPT Presentation


  • 429 Views
  • Uploaded on

MBA 2006 Non-Prime Lending Conference Issues and Trends in the Non-Prime Market May 22, 2006 Marina Walsh MBA Research Department About the MBA/STRATMOR Peer Group Program PROGRAM OBJECTIVES:

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'MBA 2006 Non-Prime Lending Conference Issues and Trends in the Non-Prime Market May 22, 2006 Marina Walsh MBA Research' - jacob


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1
MBA 2006 Non-Prime Lending Conference

Issues and Trends in the Non-Prime Market

May 22, 2006

Marina Walsh

MBA Research Department

slide2

About the MBA/STRATMOR Peer Group Program

  • PROGRAM OBJECTIVES:
  • To create a means for participating mortgage banking companies to review their financial results in relation to their peers at semi-annual intervals.
  • To offer timely data that will allow quick responses to changing business environments.
  • To analyze the factors that drive mortgage business performance.
  • To provide participants with a forum to discuss financial results through roundtable meetings at an off-site location.
  • To offer maximum comparative analysis through the following peer groups:
    • Non-prime lenders and servicers (sample size – 18).
    • Four prime peer groups: Megalenders; Large lenders; Small/medium sized lenders and thrift institutions.
2005 non prime highlights
2005 Non-Prime Highlights
  • Production volumes increased by 42% overall in 2005 (33% for repeater companies).
  • Overall non-prime production net income declined to 52 bps in 2005 from 119 bps in 2004.
    • Margin decline was primarily due to a sharp decline in gain on sale, partially offset by decreased production costs.
    • Prime margins in 2005 averaged about 16 basis points.
  • Average loan servicing portfolios increased by 33% in 2005.
  • Loan servicing profits improved to $236 per loan in 2005 from $173 per loan in 2004.
    • Higher service fee income due to higher average loan balances.
    • Continuing reduction in cost to service.
slide4

Non-Prime Average Production Volume ($M)

Source: MBA/STRATMOR Peer Group Survey

Non-prime volumes increased by 33% for repeater companies from 2004 to 2005, while overall MBA industry volumes were flat.

slide5

2005 Non-Prime Production Mix

Source: MBA/STRATMOR Peer Group Survey

slide6

Non-Prime Production Income Detail

Source: MBA/STRATMOR Peer Group Survey, Spring 2006 Cycle, Broker Production Channel

Net Gain on Sale includes: Capitalized MSRs, SRPs, Fees paid to Brokers, and Secondary Marketing Gain.

slide7

Non-Prime Broker Channel: Production Expenses

Source: MBA/STRATMOR Peer Group Survey, Spring 2006 Cycle, Broker Production Channel

Decreases in per-loan expense only partially offset revenue declines from 2004-2005.

slide8

Non-Prime Average Servicing Volume per Company

Source: MBA/STRATMOR Peer Group Survey, Spring 2006 Cycle

Avg. servicing portfolios up an average of 33% in 2005.

slide9

2005 Non-Prime Servicing Results

Source: MBA/STRATMOR Peer Group Survey

slide10

Non-Prime Servicing Direct Expense

Source: MBA/STRATMOR Peer Group Survey, Preliminary Data

Source: MBA/STRATMOR Peer Group Survey

for more information
For More Information
  • Studies for Subprime Lenders/Servicers:
    • Peer Group Survey and Roundtables
    • Servicing Operations Study and Operations Forum
    • Annual Technology Focus Group Study
    • National Delinquency Survey
    • Single Family Mortgage Originations Survey
    • Annual Compensation Survey
  • Contact MBA Research at (202) 557-2817 for more information