Bank of America, Citi Warn or MortGage Business Softinging
Bank of America chairman and CEO Brian Moynihan said in a statement that the bank’s customers “have performed well, consumers have demonstrated resilience, continue to publish and maintain a healthy credit quality.” But he added that “[we] Potentially confronted with a changing economy in the future. “
With analysts, Moynihan also said that “a lot can change, given the uncertainty surrounding rates and other policy in the future path of the economy. However, the bank’s research team does not think that we will see a recession in 2025.
“They have reduced their GDP growth rates for 2025 and do not continue to see speed reductions in ’25, but expect that if inflation is under control, you can see them in the future, that is, in 2026.”
From January to March, Bofa financed $ 4.5 billion in mortgages in the first Lien-one decrease of $ 6.5 billion in Q4 2024, but an increase of 30.9% of $ 3.4 billion in the first quarter of last year. In the room for equity, Bofa $ 2.2 billion in Q1 2025 comes, somewhat a decrease of $ 2.3 billion in Q4 2024 and an increase of $ 1.9 billion in Q1 2024.
Chief Financial Officer Alastair Borthwick said that Bofa bought a portfolio of $ 8 billion from residential dogs during the first quarter, an investment that is ‘high in quality’ and ‘relationships with customers outside of those mortgage loans’.
“We expect that these loans will add a little more than $ 100 million to NII (net interest income) every year,” said Borthwick.
From 31 March, the total of BOFA, covered by mortgage, had a fair market value of $ 81 billion, an increase of $ 76.4 billion at the end of the year 2024.
Similar trends
Citi is $ 3 billion from $ 3 billion in Q1 2025, a decrease of 33% quarter over quarter and 10% year after year. On Friday, JPMorgan reported the Q1 mortgage volume of $ 9.4 billion, a decrease of 22% compared to the previous quarter, but 42% year after year. At Wells Fargo, the volume fell to $ 4.4 billion in Q1, a quarter -alto king of 25% but still 26% rose annually.
Non -Bank mortgage providers – Including Rocket Mortgage” United Wholesale Mortgage” lazily” Pennymac” Newrez And Mr. Shard – It is expected that they release their Q1 income in the coming weeks.
Since the 2008 financial crisis, the deposits for deposits have confronted with increasing regulatory pressure that has influenced the mortgage revenues. Although the current trade war introduces new uncertainties, some banks believe that a deregulating agenda can offer potential exemption.
“The world is in a wait-and-see mode and is confronted with a more negative macro front views than someone had expected at the beginning of the year and we know that long-term uncertainty in general does not hurt trust,” Citi CEO Jane Fraser told analysts.
“The worldwide changes will go beyond trade and rates. In the US, for example, regulations and tax policy are probably out in a year,” Fraser added.
According to Fraser, Citi welcomes “changes that are discussed in our own industry to pay more attention to material financial risks and to make it easier for banks to contribute to economic growth and improve customer service.”
