ABN AMRO Loans Off 29% Last Quarter
A story over at Inman News reveals another mortgage giant is losing traction. "ABN AMRO Mortgage Group's first-quarter loan production dropped 29 percent from a year ago, the company reported today. The lender's production total for the first quarter of 2005 was $10.4 billion, down from $14.7 billion during the first quarter of 2004."
The chairman had this to say, "The solid growth of our net operating profit compared with the same period last year was satisfactory, despite the much lower results from the US mortgage business." Wasn't the Mortgage Bankers Association telling us how good the numbers were, even when this blog pointed out otherwise?
2 Comments:
I bumped into a friend who is an independent mortgage broker in Colorado. He said business is way off. Part of it is the builders are funneling most of their business to in house brokers. The builder gives all kinds of incentives for they buyer to use their agent, but then the in house mortgage comes with up to 7 points of fees meaning that the incentives are really just rolled into the loan.
John & Loren,
Thanks for the comments. Loren, check out my post from yesterday regarding Centex and their mortgage department.
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