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Low Rates Have No Effect on the Profitability of Lenders

Low rates misc

It is believed that the last quarter for both Equitable and MCAN was pretty good. Even the housing activity flourished at the late summertime. This helped to inflate the lending on residential properties among lenders. This resulted in the growth of net income that is better than the year of 2012.


Equitable Bank also saw a gigantic increase of twenty-four percent in the lending volume, in the single family. The bank also reported about the mortgage principal of three point five billion dollars, with up to twenty-four percent or six-hundred eighty six million dollars every year.


The production reached as high as eight percent to four-hundred sixty four million dollars during the third quarter of the year of 2012.


Equitable is popular for its Alt-a lending. There is also no change that is reported for about ninety days. This is in terms of arrear rates that stood at around 0.31%. Technically speaking, there are three persons that got into trouble of paying their mortgages for ninety days. The stage delinquency also dropped at twenty-two percent than last year.


MCAN even reported something about the lower possible rate of the mortgage impairments. It also observed a triple increase in the net income than the third quarter of the last year. For instance, three point five billion dollars are turned into nine point seven billion dollars.


Based on the press release of MCAN, the highest profit is obtained from the highest income earned on mortgages. There is also a better income obtained from the mortgages at Xceed. The good news is that the mortgages at Xceed pull good yields. This is right after the competition at the rock bottom level. According to the income statements, low rates have not eliminated the chances of profitability from the lending industry.

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