Weak Mortgage Income Hurts U.S. Regional Lenders

Reuters, July 21, 2017–Sruthi Shankar, Diptendu Lahiri
Weak refinancing, thanks to higher interest rates, took a bite out off regional banks’ earnings in the second quarter and loan growth remained sluggish, mirroring trends seen at larger banks. “With the decline in volume, we are seeing vigorous competition for the loans that are getting done, and profit margins have narrowed for all lenders,” said MBA Chief Economist Mike Fratantoni.