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ยป IN THE NEWS BofA's Profits Quadruple in Q1, Mortgage Banking Income Drops IN THE NEWS North Dakota rank: 49 90+ Day Delinquency Rate Foreclosure Rate March 2013 0.6% Unemployment Rate 0.9% 3.3% year ago 0.7% 1.1% 3.0% year-over-year change Bank of America's (BofA) first-quarter net income nearly quadrupled over that of last year, according to the bank's quarterly financial filings. BofA reported net income of $2.6 billion for the first quarter of 2013, up from $653 million for the same period last year. Revenue was $23.7 billion, up from $22.5 billion a year earlier. In its earnings report, the Charlotte, North Carolina-based bank attributed its results to "increased brokerage income, higher investment banking fees, and improved credit quality across all major portfolios, partially offset by lower mortgage banking income and lower net gains on the sales of debt securities." On the residential lending front, the company reported lower mortgage banking income, largely as a result of lower servicing income. However, first-lien mortgage production rose 57 percent to $24 billion, approximately 91 percent of which was for refinances. In addition, the number of 60-plus day delinquent first mortgages dropped by more than 100,000 from Q 4, falling to 667,000 by the end of the first quarter of this year. The bank's litigation expenses were $881 million in Q1 2013, down quarter-over-quarter but up nearly $100 million year-over-year. Included in those expenses was a class action settlement between Countrywide entities and several institutional and individual plaintiffs concerning mortgage-backed securities issued by Countrywide subsidiaries. Once approved, BofA estimates the settlement will resolve approximately 80 percent of the unpaid principal balance of the Countrywide-issued securities involved in claims. STAT INSIGHT $4,280,000,000 Lost wealth resulting from foreclosures in North Carolina. Source: Alliance for a Just Society -15.0% -22.4% 10.0% Top County RaNsom CouNTy 90+ Day Delinquency Rate March 2013 0.7% Foreclosure Rate 1.6% year ago 1.1% 3.4% year-over-year change -37.8% -51.4% Top Core-Based statistical area JamesTowN, ND 90+ Day Delinquency Rate Foreclosure Rate March 2013 0.5% 1.4% year ago 0.6% 1.1% year-over-year change -6.2% 31.3% note: The 90+ day delinquecy rate is the percentage of outstanding mortgage loans that are seriously delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in foreclosure. State rank is based on the March 2013 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary March 2013 figures released by the Bureau of Labor Statistics. All other data courtesy of LPS Applied Analytics. Ohio rank: 12 90+ Day Delinquency Rate Foreclosure Rate March 2013 3.0% Unemployment Rate 3.6% 7.1% year ago 3.2% 4.5% 7.4% year-over-year change -4.6% -19.6% -4.1% Top County MahOning COunTy 90+ Day Delinquency Rate March 2013 3.9% Foreclosure Rate 6.3% year ago 4.3% 7.6% year-over-year change -8.4% -17.1% Top Core-Based Statistical area aShTaBula, Oh 90+ Day Delinquency Rate Foreclosure Rate March 2013 3.3% 5.8% year ago 3.6% 7.0% year-over-year change -7.6% VISIT US ONLINE @ DSNEWS.COM -16.7% note: The 90+ day delinquecy rate is the percentage of outstanding mortgage loans that are seriously delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in foreclosure. State rank is based on the March 2013 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary March 2013 figures released by the Bureau of Labor Statistics. All other data courtesy of LPS Applied Analytics. KeyBank Reveals Commercial Mortgage Servicing Acquisition Deals KeyBank Real Estate Capital, the commercial real estate business unit of KeyCorp, entered into agreements with Bank of America (BofA) and Berkadia Commercial Mortgage that are expected to elevate its status to one of the nation's largest commercial mortgage servicers. According to a statement from KeyBank, BofA held a commercial mortgage servicing portfolio of approximately $110.5 billion as of the end of March. The transaction also includes a CMBS special servicing portfolio of about $14 billion from BofA. KeyBank says it plans to purchase substantially all of the third-party CMBS and special servicing rights from BofA's global mortgages and securitized products business. The transaction will give KeyBank a servicing portfolio of approximately $205 billion and place it as the third largest servicer of commercial and multifamily loans in the nation. KeyBank also entered into a long-term subservicing agreement with Berkadia. As part of the agreement, Berkadia will act as subservicer on all CMBS primary servicing acquired from BofA. KeyBank will also acquire Berkadia's CMBS special servicing business. After closing the agreements with Bank of America and Berkadia, KeyBank will be a special servicer on approximately $47 billion of CMBS, making it the fifth largest CMBS special servicer. KeyBank also holds the highest commercial servicer ratings from Morningstar Credit Ratings and S&P as a CMBS master, primary, and special servicer, the company stated in a release. "Acquiring these portfolios allows us to further leverage our highly rated servicing platform," said Marty O'Connor, EVP and head of KeyBank real estate capital loan servicing and asset management. "Our existing partnership with Berkadia will allow us to quickly integrate the Bank of America portfolios." "This agreement allows KeyBank to once again take advantage of our highly scalable and highly rated mortgage servicing platform," added Mark McCool, EVP and head of servicing for Berkadia. KeyCorp is headquartered in Cleveland, Ohio and provides services in 14 states as KeyBank N.A. 103