How do you interpret mortgage finance operations — provision for credit losses?

An increase suggests deteriorating credit quality or a more conservative economic outlook, while a decrease suggests improved portfolio health.

How does mortgage finance operations — provision for credit losses compare across companies?

Standard credit risk metric reported by all lenders under CECL or similar accounting standards.

Ally Financial ALLY Mortgage Finance operations — Provision for Credit Losses

Discontinued — last reported Q1 '21

Similar metrics at other companies

RWTResidential Mortgage Banking — Provision For Loan Lease And Other Losses

$0—

AFGOther — Provision for expected credit losses

$500K—

ACR

ACRResidential Mortgage Loans — Provision For Loan And Lease Losses

$0-100%

LENFinancial Services — Provision for losses

$713.75K+692%

CIMMortgage Origination — Increase in provision for credit losses

$0—

RJFAsset Management — Bank loan provision for credit losses

$0—

Other financials

Income statement

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Revenue$2.1B+36.4%

Net income$319.0M+242%

EPS (diluted)$0.93+213%

Balance sheet

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Cash & equivalents$11.2B-1.6%

Total debt$22.8B+26.9%

Total equity$15.6B+9.7%

Total assets$197.27B+2.0%

Cash flow

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Operating cash flow$1.4B+45.9%

CapEx-—

Free cash flow$1.1B-2.9%

Valuation

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Market cap$13.94B+7.8%

Enterprise value$25.47B+33.3%

P/E10×-33.1×

P/S1.7×0.0×

Profitability

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Net margin16.5%+12.6pp

FCF margin55.3%—

Returns & leverage

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Return on equity9.4%+7.2pp

Debt / equity1.5×+0.2×

Where this comes from

Reported directly by Ally Financial in its filing.

Tagged under the XBRL concept us-gaap:ProvisionForLoanAndLeaseLosses.

The official record: Ally Financial’s 10-Q, filed May 3, 2021, on SEC EDGAR. View the filing →

Questions, answered.

What does mortgage finance operations — provision for credit losses mean?: The amount of money set aside to cover potential losses from unpaid mortgage loans.
How do you interpret mortgage finance operations — provision for credit losses?: An increase suggests deteriorating credit quality or a more conservative economic outlook, while a decrease suggests improved portfolio health.
How does mortgage finance operations — provision for credit losses compare across companies?: Standard credit risk metric reported by all lenders under CECL or similar accounting standards.