Thursday, April 11, 2013

Orange County Banks Brace For Hit As Mortgage Demand Begins To Slow




Orange County Mortgage Brokers have known for a while the recent mortgage boom has been slowing down and many people have been wondering how this is going to affect the bottom lines of banks across the country.

A Shining Light In A Slow Economy?

Even though mortgage industry experts are expecting coming statistics to show that mortgage originations have slowed down in the last quarter, Orange County Mortgage Brokers are still in agreement that mortgage business has been the bright spot that has continued to help the struggling economy.

In order to beat the bad news out of the gate, some lenders like U.S. Bank are already announcing that their mortgage income from the first quarter of this year will be down by 15% or more.

Kevin Kabat, CEO of Bankcorp has said that they didn’t expect mortgages to decline as quickly as they have, and many of the industry’s top analysts like: Ken Usdin are also bracing financial industry watchers and investors to expect profits from lenders originating mortgages to be down by as much as 20% or more.

What’s The Reason For The Decline?

According to analysts in the Mortgage Bankers Association, the decline in mortgage originations in Orange County and across the country is completely normal since homeowners across the country typically refinance their homes in phases or waves of activity that can be tied to the rise and fall in interest rates.

Not Bad News For All Banks?

Even though most banks are telling investors to be ready for bad news, not every bank has been affected, one bank in particular: Sanford C. Bernstein & Co. has said that they only expect their mortgage originations to fall by just 10%

To learn more about the latest mortgage industry news or to get a quote for an Orange County Mortgage Loan, contact Sun Financial Group today by calling us at (949) 699-1950. 

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