Mortgage Daily

Published On: October 16, 2009

The bad news is that residential originations fell and residential late payments rose at Bank of America Corp. The good news is that home-equity loan delinquency moderated and commercial mortgage delinquency fell. In addition, the banking behemoth managed to exceed $300 billion in volume so far in 2009.

Third-quarter home loan production was $98.4 billion, the Charlotte, N.C.-based company reported today. Fundings fell from $114.3 billion in the previous quarter but climbed from $58.6 billion the same quarter in the previous year.

From Jan. 1 through Sept. 30, total originations were $301.9 billion.

Home-equity loans accounted for $2.7 billion of the latest quarterly activity, down from the second quarter’s $3.7 billion and the third-quarter 2008’s $7.0 billion.

Commercial mortgage fundings were $6.0 billion.

The mortgage servicing portfolio finished September at $2.1483 trillion, higher than $2.1119 trillion at the end of the second quarter. The portfolio stood at $2.0262 trillion 12 months prior. Included in the Sept. 30 figure were $1.726 trillion in loans serviced for others, compared to the prior quarter’s $1.703 trillion.

Residential mortgage holdings were $238.9 billion on Sept. 30, down from $246.0 billion on June 30. Home-equity loans on the balance sheet fell to $152.0 billion from $155.1 billion, while discontinued real estate holdings declined to $15.5 billion from $17.5 billion.

Residential delinquency of at least 30 days shot up to 4.0 percent from the second quarter’s 3.1 percent and 2.3 percent a year prior.

The bank noted that it plans to convert the mortgage servicing platform at Countrywide Home Loans during the current quarter.

HEL delinquency was 1.4 percent, up slightly from 1.3 percent in the first quarter and in the third-quarter 2008. The HEL rate had been as high as 1.8 percent in the fourth-quarter 2008.

Nonperforming home mortgage holdings rose to $19.5 billion from $17.6 billion three months earlier and $6.7 billion 12 months earlier.

California and Florida accounted for nearly 60 percent of losses — though the two coastal states only accounted for 42 percent of the total portfolio.

Commercial mortgage holdings declined to $72.7 billion at the end of last month from $75.1 billion. Commercial delinquency of at least 90 days eased to 0.27 percent from the second quarter’s 0.41 percent.

Mortgage banking income at the home loans and insurance group, which is run by Barbara Desoer, was $1.3 billion in the third quarter. Earnings, which include production and servicing income, were $2.5 billion in the previous quarter and $1.7 billion a year prior.

The overall corporation saw a first-quarter loss of $1.0 billion, souring from a $3.2 billion second-quarter profit. A year earlier, BoA earned $1.2 billion.

Company-wide, the latest period ended with 281,863 full-time equivalent employees, slipping from 282,408 at the end of the second quarter.

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