Quarterly home lending activity picked up at EverBank Financial Corp. Despite an increase in residential assets, the total servicing portfolio was down as the company sold off mortgage servicing rights.
From April 1 to June 30, EverBank closed new residential loans at $2.718 billion, according to second-quarter earnings information.
Home loan fundings improved over the $2.366 billion originated in the first quarter. This amount was revised from the $2.344 billion originally reported.
The most-recent residential loan volume also increased from the $2.233 billion funded during the second-quarter 2014.
“We achieved strong consumer and commercial volumes in the quarter and enhanced out commercial product offering with the hiring of an asset based lending team,” said W. Blake Wilson, president and chief operating officer of EverBank.
For the first six months of this year, total mortgage production came to $5.084 billion.
Second-quarter 2015 volume included $1.459 billion in jumbo mortgages and $1.259 billion in conventional loans.
By lending channel, retail originated $1.729 billion, while consumer-direct closed $0.411 billion. The remaining $0.578 billion of total volume came from correspondent acquisitions.
New applications grew to $1.8 billion from $1.7 billion in the first quarter.
Second-quarter interest rate locks totaled $1.6 billion, barely changed from the prior financial reporting period.
As of June 30, 2015, the Jacksonville, Florida-based lender serviced a total of $44.836 billion in residential loans.
The servicing portfolio was off from $50.481 billion reported as of March 31. The portfolio also shrank from $50.790 billion noted as of June 30, 2014.
As part of its strategic business activities, the mortgage provider said it “closed on the sale of $5.5 billion of unpaid principal balance of Ginnie Mae MSR to Green Tree Servicing LLC on May 20, 2015, and terminated our existing subservicing agreement with GTS.”
Residential assets on the balance sheet grew to $10.961 billion from $9.950 listed at the end of March. As well, the recent investment portfolio balance was bigger than the $8.541 billion calculated as of the June-ended date, a year prior.
The latest total included $10.724 billion in residential loans and $0.237 billion in home-equity lines of credit.
Despite Wilson’s second-quarter comments concerning commercial originations, commercial lending and commercial real estate lending dipped to $0.466 billion from $0.480 billion in the first quarter. The second-quarter commercial loan origination amount was higher, however, than the $0.285 billion closed in the same period in 2014.
At the end of June 2015, EverBank declared $5.887 billion in commercial loan assets. These holdings expanded from the March-ended balance of $5.654 billion and last year’s June-ended total of $4.545 billion.
The latest commercial investment portfolio total included commercial loans and CRE loans at $3.732 billion and warehouse assets at $2.156 billion.
Company-wide income prior to income taxes reached $67 million — $44 million more than earned in the prior quarter and $11 million above income counted in the second-quarter 2014.
