Driven by a decline in home-equity loan activity, quarterly mortgage production tumbled at Bank of America Corp. The company saw a loss of nearly $1 billion from its consumer real estate operations.
Total mortgage originations were $33.9 billion during the second quarter, earnings data reported today indicated. Fundings fell from $38.6 billion in the prior quarter and $51.9 billion in the second quarter 2007.
Included in the latest figures were $11.5 billion in HEL production, which fell from $16.6 billion during the first quarter and tumbled from $22.7 billion a year earlier.
BoA serviced $411.5 billion in balance-sheet mortgages as of June 30, up from $404.3 billion on March 31. Mortgages serviced for investors were $292 billion at the end of June, climbing from $268 billion.
Residential mortgages outstanding ended the latest period at $235.5 billion, falling from $266.1 billion at the end of March. HELs outstanding were $121.4 billion, up from $118.4 billion. Commercial real estate loans ended June at $62.9 billion, nudging up from $62.7 billion.
Mortgage delinquency of at least 30 days was 2.07 percent on June 30, while HEL delinquency was 1.27 percent.
Net charge-off/losses on residential mortgages was 0.24 percent in the second quarter on a held basis, up from 0.10 percent in the first quarter, while the rate for HELs was 3.09 percent, climbing from 1.71 percent. On commercial real estate net charge-off/losses were 0.88 percent, up from 0.70 percent.
Second-quarter mortgage banking income was $409 million, down from $656 million in the prior quarter but better than $297 million during the prior year. However, consumer real estate net income, hurt by higher credit costs, was a $982 million loss.
Net income across all of BoA was $3.4 billion, more than double the first quarter's $1.2 billion but less than $5.8 billion in the second quarter 2007.
The company had 206,587 full-time employees on June 30, up from 209,096 three months prior.
Data from Countrywide Financial Corp., which BoA acquired on July 1, were excluded from the BoA's second-quarter figures.