In addition to a big drop in residential loan originations at U.S. Bancorp, mortgage earnings sank and home loan delinquency increased.
During the three months ended Dec. 31, residential loan production totaled $12.658 billion, earnings data released Wednesday indicated.
Originations slid from $21.506 billion closed in the third quarter and plummeted from the $28.014 billion funded in the fourth-quarter 2012.
Fourth-quarter volume included $8.563 in business that was sold, $2.801 billion in loans originated for the investment portfolio and $1.294 billion in home-equity loan production.
During all of last year, originations totaled $84.898 billion, down from the $103.948 billion closed in 2012.
Quarterly production is poised for a further slide based on loan applications volume, which fell to $10.605 billion from third quarter's $13.335 billion.
The Minneapolis-based bank reported a serviced-for-others portfolio of $226.842 billion as of Dec. 31, 2013, creeping up from $226.727 billion three months earlier. The third-party servicing portfolio stood at $215.637 billion a year earlier.
Residential assets on the balance sheet increased to $51.156 billion from $50.170 billion at the end of the third quarter and $44.018 billion at the end of 2012.
The Dec. 31, 2013, total reflected $37.545 billion in residential mortgages and $13.611 billion in first-lien HELs.
Mortgage delinquency of at least 30 days, including non-performing loans, jumped to 2.86 percent from 2.69 percent at the end of the third quarter but was lower than 2.93 percent at the end of the fourth-quarter 2012.
Home-equity and second mortgages accounted for $15.442 billion in assets, off from $15.544 billion at the end of October and $16.726 billion at the end of 2012.
HEL delinquency inched up 1 basis point to 2.06 percent last month. But performance improved from a year prior, when the 30-day rate was 2.19 percent.
U.S. Bank's investment portfolio also included $39.885 billion in commercial real estate loans, slightly more than $38.678 billion as of Oct. 31. This asset category has grown from the same point in 2012, when CRE loans totaled $36.953 billion.
Last month's total CRE assets included $32.183 billion in commercial mortgages and $7.702 billion in construction-and-development loans.
CRE delinquency fell to 1.07 percent from 1.10 percent and was also down from 1.93 percent a year earlier.
After making $32 million in repurchase and make-whole payments during the final three months of 2013, U.S. Bank finished last year with $89 million outstanding.
Within the mortgage banking business, income before income taxes was $144 million, tumbling 40 percent from the third quarter and plummeting my more than half compared to the fourth-quarter 2012.
Across all business lines, U.S. Bancorp earned $1.9 billion before taxes, slipping from the $2.0 billion three months earlier and a year earlier.
At 3,081 branches, U.S. Bank had seven fewer than as of the last report.