Res, CRE Delinquency Improve at Regions as HEL Lates Surge

Home loan fundings were 30,571 mortgages for $2.7 billion during the third quarter, according to earnings data released today by the Birmingham, Ala.-based firm. Volume fell from $3.1 billion in the second quarter.

From January through September, residential originations totaled $8.6 billion.

Regions owned $15.5 billion in residential loans as of Sept. 30, slightly off from $15.6 billion three months earlier and $16.2 billion 12 months earlier. Alt-A mortgages represented $2.3 billion of the latest total.

Home-equity loan holdings eased to $15.6 billion from the second quarter’s $15.8 billion and $15.8 billion as of Sept. 30, 2008.

Residential delinquency of at least 90 days was 2.23 percent at the end of the third quarter, lower than 2.32 percent three months earlier but worse than 1.48 percent the prior year. HEL late payments surged to 1.42 percent from just 0.94 percent at the end of June. A year earlier, the HEL rate was 1.09 percent.

The weighted-average original loan-to-value on Region’s residential holdings was 70 percent as of Sept. 30.

The report reflected construction loan assets of $7.5 billion, falling from $8.2 billion as of June’s end and $11.6 billion a year ago.

Commercial mortgages on the balance sheet ended last month at $28.3 billion, off from $28.7 billion at the end of June but higher than $25.7 billion a year prior.

Delinquency of at least 90 days on owner-occupied commercial mortgages was just 0.08 percent as of Sept. 30, lower than 0.12 percent three months earlier. Non-owner occupied commercial mortgage delinquency fell to 0.19 percent from 0.27 percent.

Third-quarter mortgage income was $76 million, better than $64 million the prior quarter and $33 million the prior year.

Net income before taxes for the entire company came in at a $437 million loss, worse than the $244 million loss in the second quarter and the $79 million profit in the third-quarter 2008.