NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) released Q2 Bank earnings comment: “Strong Mortgage Revenue & Volumes Likely, Though Questions Remain for Rest of 2015.” The report makes the following key points:
- KBRA believes that residential mortgages could be a bright spot in Q2 2015 financial results for both large banks and non-banks, but loan growth for the U.S. banking industry as a whole is likely to remain constrained by regulatory factors.
- Though mortgage lending volumes in the second half of 2015 are likely to show continued strength, KBRA believes investors should remain cautious about the outlook for the balance of the year due to rising interest rates and structural factors.
- Non-bank firms continue to slowly grow their share of lending and servicing in the 1-4 family mortgage sector. Even with the frequent expressions of concern about the growth in non-bank mortgage lending and servicing, however, KBRA notes that the market share of commercial banks operating in the residential mortgage market remains high by historical standards.
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About Kroll Bond Rating Agency
KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).