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Chase Production Rises, Servicing Falls

Second-quarter mortgage production and earnings increased at JPMorgan Chase & Co. Servicing, however, stepped back.

From April 1 through June 30, residential loan production, excluding home-equity loans, reached $29.3 billion, according to the company’s Tuesday-released second-quarter earnings report.

The last time quarterly volume was this strong was in the third-quarter 2013, when loan closings amounted to $40.5 billion.

Chase’s originations shot past its first quarter production total of $24.7 billion.

As well, new home loans fared much better than the $16.8 billion originated in last year’s second-quarter.

The recent production total included $9.8 billion in retail originations compared to the prior quarter’s $8.1 billion. Correspondent acquisitions comprised $19.5 billion of total lending volume, more than $16.6 billion in the first quarter.
Altogether, Chase’s new mortgage business was $54.0 billion for the first six months this year.

The New York-based lender documented its total mortgage servicing portfolio at $917.0 billion as June 30, thinning from $924.3 billion as of March 31 and $980.4 billion serviced as of the same point in June a year ago.

Third party-servicing accounted for $723.4 billion of the latest portfolio total.

For the second quarter, Chase listed $203.130 billion in total-period end home loans owned. Residential investments grew from the $191.661 billion listed at the end of the first quarter and the $182.244 billion documented as of the second quarter last year.

As of June 30, the company’s assets included $63.316 billion in HELs, $8.109 billion in subprime mortgages and $131.270 billion in prime loans including adjustable-rate mortgage options.

Excluding purchased credit-impaired loans, Chase’s mortgage investment portfolio had a 30-day or more delinquency rate of 1.95 percent. This rate bettered from 2.30 percent reported as of March 31 and 2.94 percent listed as of June 30, 2014.

The 30-day or more PCI loan delinquency rate of 11.65 percent also fared better than the 12.25 percent as of the end of March and 14.08 percent as of the end of June last year.

Mortgage banking income before taxes rose to $0.942 billion, well ahead of the $0.526 billion earned brought in the first quarter. Recent income, however, was short of the second-quarter 2014 earnings of $1.208 billion.

From the first of April through the end of June, Chase earned $8.4 billion, before taxes, at the holding-company level. As a result, recent earnings were stronger than the first-quarter income of $8.2 billion. Still, second-quarter earnings were slightly weaker than last year’s second-quarter income of $8.6 billion.

Chase ended June with 237,459 employees, company-wide. The publicly-traded firm accounted for 3,686 fewer staff members than as of March 31 and 7,733 fewer workers that June’s endpoint in 2014.

At the end of June, branch count of 5,504 was 66 short of the March ending total.

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