As home lending slowed and loan servicing diminished at Bank of America Corp., mortgage losses widened. Mortgage assets expanded, though.
The fourth-quarter earnings report from the Charlotte, North Carolina-based bank-holding company indicated income before income taxes was $6.2 billion.
After-tax losses widened to $2.7 billion from $0.3 billion in the fourth-quarter 2016 and were “primarily driven by the impact from the tax act”
Losses from mortgage banking widened to $108 million from $20 million in the third quarter and swung from a hefty $519 million profit in the fourth-quarter 2016.
The financial institution originated $16.758 billion in residential loans during the fourth-quarter 2017, including $12.705 billion in first mortgages and $4.053 billion in home-equity loans.
Total production slipped from $17.316 billion the prior quarter and declined from $21.916 billion a year prior.
For all of last year, originations amounted to $67.505 billion, less than $79.367 billion in 2016.
BofA serviced $256 billion for investors. The servicing portfolio continued to decline from $267 billion as of Sept. 30, 2017, and $307 billion as of year-end 2016.
Residential asset holdings ended last year at $261.555 billion — including $203.811 billion in mortgages and $57.744 billion in HELs. The portfolio expanded from $259.198 billion at the end of the third quarter and $258.240 billion at the end of 2016.
Commercial real estate loans of the balance sheet fell to $58.298 billion from $59.628 billion but were greater than $57.355 billion as 2016 ended.
There were 209,376 people on BofA’s payroll at the conclusion of last month. Staffing was reduced from 209,839 three months earlier and 210,673 one year earlier.
The 4,470 financial centers in operation at the close of the most-recent period were 41 fewer than the preceding quarter.
The report indicated that 30 financial centers were opened in the last 12 months, while 289 were renovated.