Tag Archives: Quarterly Earnings

Ally Financial's GMAC Mortgage subsidiary was the first major servicer to announce a foreclosure freeze after finding problems in its procedures that led to errors in legal affidavits. In the words of Ally's own CEO, ""We had a robo-signer affidavit problem. We're embarrassed about it and we fixed it. We'll be the first to say we screwed up."" The company reported a $269 million profit for the third quarter on Wednesday, and said it's decided not to sell its ResCap mortgage unit.

Freddie Mac said Wednesday that it lost $2.5 billion during the third quarter of this year. Add to that the $1.6 billion dividend payment the GSE had to make to Treasury on stock the company relinquished in exchange for bailout money, and Freddie Mac reported a net loss attributable to common shareholders of $4.1 billion. The company is asking Treasury for a draw of $100 million in taxpayer dollars. Since Freddie Mac was placed under government control, it has needed $64.2 billion to stay afloat.

Bank of America said Tuesday that it lost $7.3 billion during the three-month period ending in September. The company attributed the deficit to new financial reform regulations related to credit and debit card payments. On the mortgage side of its business, though, the company is seeing improvements. Mortgage banking income jumped 95 percent last quarter, the ratio of nonperforming loans and assets declined, and no sizeable losses are expected from the company's foreclosure suspension and affidavit problems.

Citigroup reported Monday that it pulled in a profit of $2.2 billion, or 7 cents per share, during the third quarter of this year. The company outperformed analysts' expectations of 6 cents per share as it boasted its third straight quarter of positive gains. Citi has skirted recent revelations of flaws in several major banks' handling of foreclosure paperwork, but the issue was front-of-mind during the company's conference call with investors. Citi officials stressed that reviews have not identified any issues with foreclosure processing or affidavits.

The U.S. thrift industry reported second-quarter earnings of $1.49 billion, its fourth consecutive quarterly profit. The industry consists of savings and loan institutions that by law are required to have at least 65 percent of their lending in mortgages and other consumer loans. With today's troubled housing market, their mandated line of business is proving precarious. The industry's regulator warns that thrifts continue to face challenges from delinquent loans, with the number of problem thrifts growing and overall assets declining.

Freddie Mac reported Monday that it lost $4.7 billion during the second quarter. The GSE is asking the Treasury for another $1.8 billion of taxpayer dollars. Freddie has drawn $64 billion from its line of credit with the Treasury since the government took control of the mortgage giant in September 2008. Despite a continuous string of losses - this was the 11th in the last 12 quarters - Freddie Mac's latest earnings report actually marks an improvement. For the previous three-month period, the GSE posted a $6.7 billion loss.

Fannie Mae's second-quarter losses narrowed considerably from the demoralizing financials of the past several years that found the nation's largest mortgage financier underwater itself in a sea of red ink. The GSE reported Thursday that it lost $1.2 billion last quarter. It was Fannie's smallest loss in more than three years. The company also said it needs far less money from taxpayers this quarter - $1.5 billion. The company acquired 68,838 single-family REOs through foreclosure in Q2, and its seriously delinquent rate dropped to 4.99 percent.

Ally Financial, the new face of GMAC Inc., reported Tuesday that it posted net income of $565 million for the second quarter of 2010. That compares to a net loss of $3.9 billion for the second quarter of 2009. The company's mortgage operations, which include Residential Capital (ResCap), turned a Q2 profit of $230 million. That's up from net earnings of $156 million the previous quarter and a loss of $1.3 billion a year earlier. Ally attributed the income increase to improved performance in the origination and servicing business and gains on the sale of legacy mortgage assets.

First American Financial Corporation reported Tuesday that its net income during the second quarter was $33.8 million, or 32 cents per share. The Q2 profit posted by the title insurance and settlement company follows its spin-off from CoreLogic just two months ago and represents an 18 percent increase compared to a year earlier. First American says its average revenue per order increased 20 percent, thanks to a shift in the order mix to higher premium resale transactions.

Bank of America Corporation reported second-quarter 2010 net income of $3.1 billion on Friday. That follows a $3.2 billion profit during the first quarter of this year. According to the company's earnings report, results were driven by lower credit costs, which improved for the fourth straight quarter. However mortgage banking income declined. Nonperforming loans, leases, and foreclosed properties were $35.7 billion, and BofA said it bolstered loss reserves for its consumer real estate portfolios, amid continued stress in the housing market.