Home loan originations have fallen by nearly a third during the past year at USÂ Bank. But the servicing portfolio expanded as residential holdings increased and delinquency improved.
First-quarter residential loan production tumbled to $9.0 billion from $11.1 billion in the fourth quarter, earnings data released today by U.S. Bancorp indicated. Volume was $13.4 billion in the first-quarter 2009.
Included in first-quarter activity was $7 million in first-lien subprime production with a weighted-average FICOÂ score of 616. Another $3 million in subprime second-lien fundings had a weighted-average FICOÂ score of 630.
Mortgages serviced for third parties amounted to $156.5 billion at the end of last month, growing from $150.8 billion three months earlier $126.7 billion a year ago.
U.S. Bank held $26.5 billion in first-lien residential loans and home-equity loans on its balance sheet at the end of last month, higher than $26.1 billion at the end of last year. On March 31, 2009, home loans stood at $24.0 billion.
Home-equity loans and second mortgages accounted for another $19.3 billion, lower than $19.4 billion on Dec. 31 but higher than $19.2 billion on March 31, 2010.
Commercial real estate loan assets rose to $34.2 billion from $34.1 billion and were $33.6 billion a year before.
The Minneapolis-based company said residential delinquency of at least 30 days, including nonperforming loans, was 6.29 percent on March 31, better than 6.95 percent on Dec. 31 but worse than 5.01 percent 12 months prior.
HEL delinquency fell to 1.71 percent from the fourth quarter’s 1.87 percent but climbed from 1.63 percent a year ago.
Income before taxes within mortgage banking was $156 million, 19 percent lower than the fourth quarter and down 17 percent from a year earlier.
U.S. Bancorp earned $875 million before taxes, better than $760 million three months earlier and $694 million a year earlier.
