Bank profits take hit, thanks to faltering mortgage lending

 The LA Times has more:

The third-quarter profits also were $1.5 billion less than in the same period a year earlier, ending a streak of year-over-year increases that began when the Great Recession ended in mid-2009.

Profits were hurt by a jump in interest rates after Federal Reserve officials indicated they were preparing to reduce the central bank’s bond-buying stimulus program….

Mortgage originations were down 30% in the third quarter from the previous quarter, the FDIC said. And the end to a long period of historically low interest rates makes for “a tricky environment” for banks, Gruenberg said.

Source: LA Times

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