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New York Community Bancorp CEO Joseph Ficalora on the bank’s first-quarter earnings and the outlook for the mortgage market.
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-- reporting better than expected earnings today with help from its mortgage banking revenue so is this a sign of hope in the housing market and other things banking related -- for the -- New York Community -- CEO and he joins us -- -- Fox -- exclusive wonderful we'll -- again -- -- and I think -- have -- -- been happening a -- I don't -- -- through rate and your -- at all but the numbers were good but the stock was down about over 2% -- it -- we just saw this happening with the numbers that we're just -- -- is that -- market expectations.
Being met and yet still the stock goes down.
Well in in our particular case we've actually met or exceeded expectations several quarters and trade in volumes two times or three times normal.
Because -- the trade.
So it's not a matter of of the market.
He's reacting to our numbers as much as there are some players in the market that trade large volumes.
A stock on the day that we announce earnings strength -- new mortgages -- -- mortgages is that issuing new mortgages or the use all their mortgages that are performing or give us some color on we we we do two things.
We issue you want to -- family house loans nationally.
And then we've moved up we're gaining share in that business so we did about two point six billion.
Can house loans.
That number is up because there is more activity in the marketplace and we're gaining share from some of the players that have stepped away from that business.
Our principal business is for portfolio we issue multifamily loans and that loan.
Number is also up so we've actually increased our lending with regard to our principle asset which is right here in New York.
Now Joseph I I saw you here reminded me -- that bush institute -- last week where they're gonna focus was on lowering tax rates on lowering it never heard minimizing the regulations particular financial institutions like yours have to deal with.
Is that the biggest strain in the economy right now the the excess regulations and taxes.
If you if you go back to the depression.
The biggest problem during the period of the depression was uncertainty because the government was coming out with all kinds of new entities the FDIC.
The Federal Home Loan Bank.
The the fact that there was a new deal all these uncertainties made it very difficult for people to understand what in fact there -- going to be dealing with what we have today.
The FC Phoebe.
We have Dodd-Frank.
We have the Durbin amendment we have changes all of which.
Exaggerate the uncertainty.
When you have periods of uncertainty is much more difficult to lend money.
When you're breaking the contract we we broke the contract with bond holders with General Motors we're breaking the contract with any today with regard to alone.
Barney Frank passed -- that explicitly.
Change the contract between them all the G and a moment -- war.
All these different things make it very difficult for people to feel confident that they can get repaid what happens the requirements for a loan go up.
That means the qualified people.
Numbers go down so there are few people who qualified from home because -- -- are required to be higher.
Because the amount down payment is higher.
Not everybody had this 10% 15% 20% but down.
It changes.
That I players in the marketplace you mention Dodd-Frank it was the one year anniversary on Sunday dot frank going into effect what material change have you seen as a result I think the most important thing about the one year anniversary of Dodd-Frank coming into effect.
We still don't know what it means.
Dodd-Frank.
Is still being interpreted.
So so it's still being -- Exactly more than half of it is still has has white spaces in their revenues are regulations to come via when when you're in -- cycle -- cycle turns are inevitable we went to a major cycle turn.
Back in 2008.
But the reaction of government to the cycle turn has been the creation of more uncertainty rather than resolution.
So the economy has tried to recover several times but the economy keeps getting pushed back because the psychology of the market.
Isn't stable.
So we have a very difficult environment for people to be confident.
That they're making the right choice by putting more money into equities are coming back into the marketplace.
Jeff thanks so much for joining us -- appreciate it glad to be horrific stuff I really really well explain.
