Point Asset Management - Competitors

Point Asset Management Competition

Now Viewing Point Asset Management's competition in: Mortgage Banking

Recent Developments

FBI Investigation Hits Mortgage Industry - The FBI recently announced that its nationwide "Operation Malicious Mortgage" charged over 400 defendants in fraud schemes. The operation focused mainly on lending fraud and schemes related to foreclosure rescue and mortgage-related bankruptcy. The investigations include 19 subprime-related corporate fraud cases concerning accounting fraud, insider trading, and criminal intent in not disclosing proper loan valuations.

Home Sales, Inventory Indicate Lower Demand - Slower home sales are lowering demand for mortgages, which rising inventory indicates will continue. US existing home sales declined 15.7 percent in April 2008 compared to year-earlier levels, according to the National Association of Realtors (NAR). The number of existing homes on the market in April provided an 11.2 month supply, NAR reports, an increase of 31.8 percent from year-earlier inventory levels.

Home Prices Decline, Affect Mortgage Value - Home prices have fallen at record rates, with the sharpest declines in California, Nevada, and Florida, according to the Office of Federal Housing Enterprise Oversight (OFHEO). US home prices fell 3.1 percent over the 12 months between first quarters 2007 and 2008. This decline was the highest in the 17-year history of OFHEO's seasonally adjusted, purchase-only house price index. Falling home prices affect mortgage value.

Competitive Landscape

Demand for mortgage services is driven by home sales and the refinancing that occurs when mortgage rates are low. The profitability of individual companies depends on volume, interest rate spreads, and efficient operations. Large companies have big economies of scale in operations. Small companies compete successfully by funneling mortgages to the large companies. The industry is fragmented at the bottom but highly concentrated at the top: the largest 50 companies hold more than 70 percent of the market.

Full Industry Overview For Mortgage Banking

Mortgage Banking Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US nondepository credit intermediation and related activities, which includes mortgage banking services, is forecast to grow at an annual compounded rate of 5.7 percent between 2007 and 2012.

Nondepository Credit Intermediation Growth Even

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.