Continued weakness in the housing and credit markets caused earnings in the thrift industry to decline by 84 percent during the third quarter of 2007, compared with the comparable quarter a year ago, the Office of Thrift Supervision (OTS) reported today.
“Despite the difficult environment, I am encouraged that the managers of OTS-regulated institutions are taking the appropriate steps to provide a cushion for the future,” OTS Director John Reich said. “Strong capital and higher loan loss allowances will serve thrifts well if housing markets weaken further.”
The Director also highlighted the fact that thrifts originated a significantly higher percentage of the nation’s 1-4 family mortgages during the quarter, evidence that the thrift industry stands ready to serve the home mortgage needs of American families during challenging times.
A whole lot of passive voice in this one! I am not sure that it is a good thing to have your profits drop 84% as you are getting a larger chunk of the mortgage business.