Although there was little quarter-over-quarter change in mortgage originations and servicing at U.S. Bancorp, the rate of late payments on residential assets improved.
Home loan originations totaled $14.398 billion from Jan. 1 through March 31, according to an analysis of first-quarter earnings data released Wednesday.
Business was little changed from the $14.485 billion closed in the final quarter of last year. But activity was greatly improved from $9.251 billion originated during the first quarter of last year.
First-quarter 2015 production included $10.900 billion in
loans originated for sale, $2.131 billion in mortgages originated for investment and $1.367 billion in home-equity loans originated for the investment portfolio.
Business will likely be better in the second quarter based on mortgage application volume, which soared to $18.6 billion in this year’s first quarter from $13.6 billion in last year’s final quarter.
U.S. Bank serviced $225.196 billion in home loans for third parties. The servicing portfolio inched up from $225.007 billion three months earlier but slipped from $227.186 billion a year earlier.
Residential assets finished the first quarter at $51.089 billion, diminishing from $51.619 billion at the end of 2014 and $51.708 billion at the same point in 2014.
The most-recent residential total included $38.153 billion in mortgages and $12.936 billion in first-lien HELs.
Mortgage delinquency of at least 30 days, including non-performing loans, finished last month at 2.32 percent, 18 basis points better than at the end of last year and 41 BPS less than at the same point last year.
U.S. Bank additionally owned $15.859 billion in HELs and second mortgages, also slipping from the prior period, when the balance was $15.916 billion. But holdings of subordinate financing
have grown from $15.261 billion as of March 31, 2014.
HEL delinquency declined to 1.73 percent from 1.87 percent the prior period and 1.99 percent one year prior.
The Minneapolis-based company’s balance sheet also included $42.409 billion in commercial real estate assets, less than the $42.795 billion owned as of the end of December but more than the $40.131 billion held at the end of the first-quarter 2014.
Last month’s CRE loan holdings were comprised of $32.755 billion in commercial mortgages and $9.654 billion in construction-and-development loans.
The 30-day delinquency rate on CRE loans was cut to 0.82 percent from 0.92 percent in the fourth quarter. There was a five-basis-point reduction from a year earlier.
U.S. Bank spent $12 million on mortgage repurchases and make-whole payments during the most-recent three-month period, trimming its expenditures by $2 million from the fourth quarter and lopping off $24 million from the first-quarter 2014.
At the bank-holding company level, income prior to taxes slipped to $2.0 billion from $2.1 billion and was virtually unchanged from the first-quarter 2014.
Branch count was 3,172 as of the end of last month, four fewer than at the end of 2014.
