Home lending activity and mortgage servicing were down at Flagstar Bancorp Inc., but there was growth in its warehouse lending assets and commercial mortgage holdings.
Fourth-quarter 2014 residential loan production was $6.603 billion, the Troy, Mich.-based company reported in its quarterly financial statements.
Business slowed from $7.187 billion in mortgages closed during the previous three-month period.
Volume improved, however, from the year-earlier quarter, when Flagstar funded $6.439 billion.
Refinance share climbed to 47 percent from 38 percent in the third quarter.
Correspondent clients generated $4.8 billion of fourth-quarter 2014 production, while another $1.5 billion came from mortgage brokers and $0.3 billion was originated through the retail channel.
Mortgage rate lock commitments edged down to $6.2 billion from $6.3 billion in the third quarter, suggesting that first-quarter 2015 production is holding up.
Full-year 2014 business amounted to $24.608 billion, not as good as the $37.482 billion originated in 2013.
The total servicing portfolio was reduced to 144,149 loans for
$29.948 billion as of last month from 149,459 units for $31.440 billion as of Sept. 30.
The portfolio was also cut from 165,512 mortgages serviced for $31.392 billion as of Dec. 31, 2013.
The third-party portion of the year-end 2014 servicing portfolio was $25.427 billion.
An additional $46.724 billion was sub-serviced of others as of Dec. 31, 2014.
Residential loan assets finished last year at $2.599 billion. The bank cut its residential investments from $2.640 billion as of Sept. 30 and $2.968 billion as of Dec. 31, 2013.
The year-end 2014 total included $2.193 billion in first mortgages, $0.149 billion in second mortgages and $0.256 billion in home-equity lines of credit.
Warehouse lending assets
grew to $0.769 billion at the end of December from $0.595 billion at the end of September.
They were also higher than $0.424 billion at the end of 2013.
Flagstar reported that it owned $0.620 billion in commercial real estate loans. The CRE portfolio increased from $0.567 billion in the third quarter and $0.409 billion in the fourth-quarter 2013.
Flagstar reported that its repurchase pipeline, which bottomed out at $31 million in the third quarter, turned higher to end the year at $43 million.
Flagstar earned $16 million before income taxes, swinging from a third-quarter loss of $38 million and a whopping $248 million loss in the year-earlier period.
“We have been working tirelessly for the last two years to derisk the balance sheet, settle major legal matters, right size operating expenses, upgrade our management talent, build a strong risk management organization and focus our business strategies,” Flagstar President and Chief Executive Officer Alessandro P. DiNello stated in the report. “These efforts have begun to bear fruit and we will continue to build on this foundation going forward.”
As of Dec. 31, 2014, total staffing stood at 2,739, growing from 2,725 three months earlier. Headcount, however, was cut from 3,253 a year earlier.
Included in total employment were
209 loan officers and account executives. The mortgage sales team was reduced from 233 in the third quarter and 359 in the fourth-quarter 2013.
Loan origination centers were reduced by six from the third quarter to 26.
Flagstar added one location during the fourth quarter, leaving bank branch count at 107.
