Quarterly volume dropped 16% for Chase Home Finance, but home equity fundings jumped to the highest level this year.
Third quarter residential originations totaled $48.0 billion -- down from $56.9 billion in the preceding period, according to the latest financial supplement by parent company JPMorgan Chase. Volume is nearly 50% below its level a year ago.
Mortgage origination fallout of 28% from the second quarter offset a surge in home equity fundings -- up 42% to $13.9 billion, the New York-headquartered company reported.
Of all the origination channels, the report showed the retail channel contributed most, or $19.7 billion, to the third quarter's volume. Wholesale accounted for $11.6 in fundings, while correspondent flow and negotiated transactions totaled $16.7 billion.
Chase said it serviced nearly $554 billion at the end of quarter. The portfolio's 30+ day delinquency rate was reported at 1.50% -- up from 1.18% in the second quarter.
JPMorgan announced net income of $1.4 billion for the third quarter, which is down from the second quarter due to after-tax charges related to its merger with Bank One Corp. Meanwhile, earnings at Chase Home Finance edged up to $340 million.