Mortgages

In another escalation of Quicken Loans' ongoing clash with the government, the Department of Justice on Thursday filed a lawsuit alleging shoddy underwriting by the company.

WASHINGTON — The Federal Housing Finance Agency is sticking to its schedule and moving quickly to finalize proposed financial requirements for nonbank firms that service Fannie Mae and Freddie Mac loans.

Demographic, cultural and technological changes will reshape customer service in the mortgage business over the next 30 years, a Wells Fargo executive said.

The growth-minded regional bank is biding its time until rates rise and its M&A deals close by slowing riskier types of lending and diversifying its income sources.

Bill Emerson, chief executive of Quicken Loans, said at a recent conference that the threat of government probes and a lack of regulatory clarity are making FHA lending less attractive.

Stock Yards Bancorp in Louisville, Ky., reported much better-than-expected earnings in the first quarter one the strength of higher mortgage revenue and net interest income.

As banks have largely ceded the market for government-backed loans to nonbank lenders and servicers, it's fallen on Ginnie Mae to be sure that these nonbanks can meet their obligations to bondholders. It's a huge concern for President Ted Tozer, who says the company does not have the resources or manpower to examine these firms' finances.

Federal Housing Finance Agency Director Mel Watt just made one of the biggest policy decisions of his 14-month tenure — but so far it has hardly caused a ripple on Capitol Hill.

Federal regulators fined the mortgage servicer Green Tree Servicing $63 million in penalties and restitution on Tuesday, alleging that it mistreated borrowers at risk of foreclosure and failed to honor modifications of loans transferred from other servicers.

Cost and margin pressures drove down quarterly profits at Regions Financial in Birmingham, Ala.

Only about one in four former homeowners who lost property during the housing crash will soon become buyers again as tight credit keeps many out of the U.S. real estate market, according to a National Association of Realtors study.

SunTrust Banks in Atlanta reported higher first-quarter profit as stronger fee income and lower expenses helped offset a drop in income from lending.

First Horizon National in Memphis, Tenn., swung to a first-quarter loss after it paid $212.5 million to settle an investigation into its pre-crisis mortgage dealings.

Sandy Spring Bancorp, in Olney, Md., reported an increase in quarterly profit because of an increase in mortgage revenue.

Wintrust Financial in Rosemont, Ill., reported first-quarter earnings of $39.1 million, up 13% from a year earlier, as loans increased and mortgage revenue rose.

Mortgage lenders are stressed about how the CFPB's new mortgage disclosure rule will impact their business. But the new forms may give them a chance to improve business performance.

The House approved eight regulatory relief bills Tuesday evening, including two controversial measures opposed by a number of Democratic lawmakers and the White House.

First-quarter results from U.S. Bancorp and PNC Financial Services Group shows banks have little choice but to wait until the Fed raises interest rates. They have cut expenses almost as far as they can go, and fee income is limited in how much it can offset narrower spread income.

Bank of America reported its best quarterly profit in more than a year, but with revenue declining and expense-reduction slowing, it is unclear where the company can turn to boost earnings. Similar questions are plaguing many banks as the latest earnings season unfolds.

The San Francisco bank has produced enough growth in mortgages, C&I and other areas and made other moves to offset low rates. It is a hopeful example for mortgage-heavy banks and other lenders battling tight margins.