Mortgage News

A More than Expected Rise

By: Chris Arco, Editor April 23, 2010 Home sales of previously occupied homes jumped a 6.8% in March, reversing three months of decline, being this highest level since December according to the National Association of Realtors. Stuart Hoffman, Chief economist at PNC Financial Services Group said that “the spring selling season would be a success, and probably the most active we’re seen in years…” These sales, according to economist by Thomson Reuters, had been expected to rise 5.2 percent to 5.28 Million. And these results can help us see that the housing market is stabilizing after going through bad and devastating time.First time buyers are the ones that are taking advantage of the Tax Credit, it brought more buyers into the market. According to Lawrence Yun, the Realtors group’s chief economist said:”The tax credit has done its job” at a conference, adding: “it helped stabilized prices”. The dead line for buyers to apply is April 30th; real states agents said that is stimulating sales, but it also is raising questions about whether this path is going to float by itself without the government help; but others, like Yun says that there is going to be enough demand on the second half of the year. The direction of the housing market can also be dictated by the Foreclosures after the Tax Credit is finished, Foreclosures are making the market more affordable to the buyers. “Housing is coming back” said Hoffman, “But it has a long way to go” At CAMREO we offer REO management to real estate lenders and investors. (Advertisement).
Morgan profit up 55%
Strength from its investment banking arm pushed first-quarter profit at J.P. Morgan Chase up 55%, the New York banking giant said Wednesday.
Jamie Dimon, chairman and chief executive, said in a statement that the results "reflected another strong quarter for the investment bank, particularly in fixed income markets, and continued solid performance across asset management, commercial banking and retail banking."
However, "these good results were partially offset by high losses in the consumer credit portfolios," added Dimon.
J.P. Morgan (JPM, Trade ) reported net income of $3.3 billion, or 74 cents a share, up from $2.1 billion, or 40 cents, earned in the year-ago first quarter. Total net revenue was up 11%, to $27.7 billion.
Analysts surveyed by FactSet Research had expected, on average, a profit of 65 cents a share and revenue of $25.9 billion.
J.P. Morgan shares rose nearly 3% in early action, and the stock has climbed over 53% over the last 12 months. The performance helped lift U.S. stocks on Wednesday.
J.P. Morgan was one of the big banks to accept government support during the 2008 financial crisis, but it repaid the money quickly and emerged stronger than rivals such as Citigroup Inc. (C, Trade ) and Bank of America Corp. (BAC, Trade ).
While its consumer and commercial lending businesses are hampered by bad loans, the Dow Jones Industrial Average component's investment bank has benefited as the market rebound encouraged companies to raise new capital by selling equity or refinancing themselves by issuing new debt.
J.P. Morgan said its investment bank generated net income of $2.5 billion in the first quarter, up from $1.6 billion a year earlier.
"These results reflected strong net revenue, particularly in fixed income markets, and a benefit from the provision for credit losses," said the firm in a statement.
J.P. Morgan was the lead global underwriter on equity and equity-linked offerings during the first quarter. It was also the top underwriter on investment-grade corporate bond sales and junk bond offerings in the period, according to data from Dealogic and CreditSights, an independent fixed-income research firm. J.P. Morgan collects hefty fees for such services.
In a research note published after the results were announced, Standard & Poor's analyst Matthew Albrecht maintained his strong buy rating on the firm.
"Strong fixed income trading results and a declining loan loss provision were able to offset higher legal reserves," wrote Albrecht. "Delinquency rates have stabilized or improved across most businesses, suggesting further reductions in loan loss provisions. We also expect interest spreads to remain favorable until rates start rising, helping to offset a shrinking loan balance."
The provision for credit losses in the firm's retail financial services unit was $3.7 billion.
J.P. Morgan's retail financial services division showed a loss of $131 million in the first quarter, compared to a profit of $474 million in the same period of 2009.
"Economic pressure on consumers continued to drive losses for the mortgage and home equity portfolios," said J.P. Morgan.
The firm's retail banking unit saw a profit of $898 million, up 4%.
Card services, which houses J.P. Morgan's big credit card business, lost $303 million in the first quarter, compared to a loss of $547 million in the year-ago period. Commercial banking generated a profit of $390 million in the latest period, up slightly on the $338 million made in the first quarter of 2009.
Treasury and securities services reported a $279 million profit in the period, a 9% drop, while asset management profit jumped 75%, to $392 million.
Dimon also said that J.P. Morgan has plans to hire 9,000 new staff in the U.S., and aims for further additions worldwide.
Morgan profit up 55%
Strength from its investment banking arm pushed first-quarter profit at J.P. Morgan Chase up 55%, the New York banking giant said Wednesday.
Jamie Dimon, chairman and chief executive, said in a statement that the results "reflected another strong quarter for the investment bank, particularly in fixed income markets, and continued solid performance across asset management, commercial banking and retail banking."
However, "these good results were partially offset by high losses in the consumer credit portfolios," added Dimon.
J.P. Morgan (JPM, Trade ) reported net income of $3.3 billion, or 74 cents a share, up from $2.1 billion, or 40 cents, earned in the year-ago first quarter. Total net revenue was up 11%, to $27.7 billion.
Analysts surveyed by FactSet Research had expected, on average, a profit of 65 cents a share and revenue of $25.9 billion.
J.P. Morgan shares rose nearly 3% in early action, and the stock has climbed over 53% over the last 12 months. The performance helped lift U.S. stocks on Wednesday.
J.P. Morgan was one of the big banks to accept government support during the 2008 financial crisis, but it repaid the money quickly and emerged stronger than rivals such as Citigroup Inc. (C, Trade ) and Bank of America Corp. (BAC, Trade ).
While its consumer and commercial lending businesses are hampered by bad loans, the Dow Jones Industrial Average component's investment bank has benefited as the market rebound encouraged companies to raise new capital by selling equity or refinancing themselves by issuing new debt.
J.P. Morgan said its investment bank generated net income of $2.5 billion in the first quarter, up from $1.6 billion a year earlier.
"These results reflected strong net revenue, particularly in fixed income markets, and a benefit from the provision for credit losses," said the firm in a statement.
J.P. Morgan was the lead global underwriter on equity and equity-linked offerings during the first quarter. It was also the top underwriter on investment-grade corporate bond sales and junk bond offerings in the period, according to data from Dealogic and CreditSights, an independent fixed-income research firm. J.P. Morgan collects hefty fees for such services.
In a research note published after the results were announced, Standard & Poor's analyst Matthew Albrecht maintained his strong buy rating on the firm.
"Strong fixed income trading results and a declining loan loss provision were able to offset higher legal reserves," wrote Albrecht. "Delinquency rates have stabilized or improved across most businesses, suggesting further reductions in loan loss provisions. We also expect interest spreads to remain favorable until rates start rising, helping to offset a shrinking loan balance."
The provision for credit losses in the firm's retail financial services unit was $3.7 billion.
J.P. Morgan's retail financial services division showed a loss of $131 million in the first quarter, compared to a profit of $474 million in the same period of 2009.
"Economic pressure on consumers continued to drive losses for the mortgage and home equity portfolios," said J.P. Morgan.
The firm's retail banking unit saw a profit of $898 million, up 4%.
Card services, which houses J.P. Morgan's big credit card business, lost $303 million in the first quarter, compared to a loss of $547 million in the year-ago period. Commercial banking generated a profit of $390 million in the latest period, up slightly on the $338 million made in the first quarter of 2009.
Treasury and securities services reported a $279 million profit in the period, a 9% drop, while asset management profit jumped 75%, to $392 million.
Dimon also said that J.P. Morgan has plans to hire 9,000 new staff in the U.S., and aims for further additions worldwide. 1st Nationwide Mortgage, www.1stnwm.com