Mortgage boom buoys smaller banks
10/21/2010
By Credit.com Staff
In addition to increased demand for home loans, banks have also benefited from improved consumer credit brought about by fewer defaults, according to a Dow Jones Newswires report. Two Ohio banks that were previously in dire financial straits, Fifth Third Bank and Huntington Bank reported improved earnings in the third quarter as revenue from mortgages rose and problem loans fell considerably.
Meanwhile, Southeast regional lender SunTrust Banks, which has offices in seven Sun Belt states and is headquartered in Atlanta, saw its second consecutive profitable quarter after years of losses, the report said. The bank released $65 million in leftover loan loss reserves and said mortgage income rose $133 million after three straight quarters of losses.
Many consumers have been eager to refinance their existing mortgage because rates on home loans have remained at or near record lows for a number of months. Those that opt to refinance can save several hundred dollars a month.
