As the mortgage servicing portfolio continued to diminish at Citigroup Inc., the rate of delinquency deteriorated. Home-lending activity was mostly flat.
The New York-based firm reported in its third-quarter 2016 earnings results that income from continuing operations before income taxes was $5.6 billion.
Earnings at Citi slipped from the prior quarter, when income was $5.8 billion, and declined from the year-prior quarter, when the total came to $6.2 billion.
Mortgage originations during the three months ended Sept. 30, 2016, worked out to $6.5 billion. While business inched up from $6.4 billion in the second quarter, it was down from $7.5 billion in the third-quarter 2015.
From Jan. 1 through Sept. 30 of this year, Citi has closed $18.4 billion in residential loans.
Current-quarter lending volume is likely to come in near the third-quarter level based on salable mortgage rate locks, which dipped to $3.9 billion in the third quarter from $4.0 billion in the second quarter.
As of the end of the third quarter,
the financial institution serviced $147.6 billion in home loans for third parties. The servicing portfolio was reduced from $151.8 billion three months earlier and $162.6 billion one year earlier.
Citi owned $44.0 billion in real estate lending assets as of the most-recent date, more than $43.9 billion as of June 30 and $40.6 billion as of Sept. 30, 2015.
Delinquency of at least 30 days on non-government mortgages jumped to 0.84 percent from 0.69 percent as of mid-2016. The rate was also worse than 0.68 percent as of Sept. 30, 2015.
Citi Holdings serviced
$18.6 billion in mortgages for third parties, less than $28.5 billion three months earlier and $36.4 billion one year earlier.
Residential assets reported for Citi Holdings were $30.9 billion as of the end of last month. The investments were reduced from $33.1 billion as of the middle of this year and $47.9 billion at the same point last year.
The Sept 30, 2016, total reflected $14.4 billion in residential first mortgages and $16.5 billion in home-equity loans.
Citi Holdings’ mortgage delinquency jumped to 4.54 percent from 4.33 percent but has retreated from 5.53 percent as of the same date last year.
Citi reported a company-wide staff of 220,000 people, no different than as of mid-2016. Headcount has been cut from from 239,000 as of the same date last year.
There were 727 North American branches as of the end of last month, two fewer than at the end of June. Another 259 branches were operated by Citi Holdings, two fewer than three months prior.
