FDIC Report Discusses Challenges Bank Mortgage Lenders May Face If Interest Rates Rise
|April 26, 2002|
The profitability of the nation's residential mortgage lending specialists has become more exposed to the effects of a rising interest rate scenario that would compress net interest margins and suppress noninterest revenues associated with mortgage production and sales, according to a report released by the Federal Deposit Insurance Corporation.
Unprecedented levels of refinancing spurred by low long-term interest rates have contributed to a significant lengthening of asset maturities.
The report concludes that the current interest rate environment gives institutions the opportunity to correct mismatches between their assets and liabilities.
Attachment:Read Full Report