Mortgage Banking Round Up

According to the results of the first Capital Adequacy Stress Test Report conducted by Trepp LLC., one in eight U.S. banks are at risk. This is based on the stress test’s combination of individual bank data with severely adverse inputs, which created “what-if” scenarios for earnings, capital and asset performance for a nine-quarter projection period.

Trepp evaluated the effects of stressing the balance sheets and income statements of more than 6,000 U.S. banks. It’s test is modeled after the Federal Reserve Bank’s Comprehensive Capital Analysis Review Stress Testing.

Meanwhile, Wells Fargo & Co. and JPMorgan Chase & Co. will post third-quarter profit buoyed by government policies intended to help borrowers. Those firms U.S. Bancorp andBank of America  may report $6.9 billion of mortgage-banking revenue in the period, a 37 percent increase from a year earlier, Christopher Kotowski, an Oppenheimer & Co. analyst, said in a research note.   

Finally, mortgage rates increased following a better than expected jobs report for the month of September. The benchmark 30-year fixed mortgage rate increased to 3.59 percent, according to’s weekly national survey. The average 30-year fixed mortgage has an average of 0.44 discount and origination points.