Mortgage Daily

Published On: July 18, 2016

Yet another big home loan provider — Bank of America Corp. — realized much healthier quarterly mortgage production volume. The servicing portfolio continued to diminish.

From the first day of April to the end of June, BofA funded $20.617 billion in new home loans.

This information, as well as other operational and financial performance data, was provided in the Charlotte, North Carolina-based firm’s second-quarter earnings report.

Mortgage production raced past first-quarter originations at $16.428 billion.

New mortgage business also fared better than the $19.171 billion closed in the second-quarter last year.

This year’s second-quarter activity consisted of first mortgage loans funded at $16.314 billion and home-equity loans originated at $4.303 billion.

In the first six months, the financial giant closed $37.045 billion in residential loans.

As of June 30, BofA serviced $353 billion mortgage loans for investors, a reduction from $368 billion as of March 31 and $408 billion as of June 30, 2015.

BofA previously reported its total mortgage servicing portfolio but now is reporting just mortgage loans serviced for investors. It revised its reporting structure, eliminating the legacy assets and servicing segment under where the servicing portfolio was previously reported.

The difference in the serviced-for-others portfolio and the total servicing previously reported can be found among BofA’s residential loan holdings, which slipped to $257.530 billion from $258.211 billion at the end of March and $279.831 billion at the end of June last year.

The latest investment portfolio total included residential mortgages at $185.943 billion and home-equity loans at $71.587 billion.

BofA’s owned commercial real estate loans descended to $57.612 billion from $58.060 billion three months earlier and $52.344 billion a year earlier.

BofA’s consolidated income within its mortgage banking business receded to $0.312 billion from $0.433 billion in the first quarter. Recent income was less than a third of the $1.001 billion earned last year in the second quarter.

Holding company-level income before income taxes surged to $5.9 billion from $3.7 billion in the first-three months of 2016. On a year-over-year basis, however, earnings were down from $7.2 billion.

As of June 30 this year, BofA slashed its full-time equivalent employees to 210,516 from 213,183 counted at the end of the first quarter and 216,679 claimed at the same point in June last year.

With 4,681 physical locations at the end of the second quarter, BofA had eight fewer financial centers than accounted for at the end of March.

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