|National City Reports Nice Numbers
Second quarter production $23.0 billion
July 16, 2004
By MortgageDaily.com staff
|While National City Corp.’s 2004 originations are off from last year, the quarter saw increased conforming volume and record subprime originations.
The Cleveland, Ohio-based thrift reported it originated nearly $23.0 billion in loans during the second quarter, up from $18.6 billion the prior quarter. Last year at this time, volume totaled $34.1 billion.
The company said that its conforming mortgage division, National City Mortgage Corp., contributed nearly $17.3 billion to the latest volume — a 23% jump from the first quarter total. However, production was 90% higher a year ago. The conforming total consisted of $8.7 billion in wholesale originations, and retail loans made up $8.5 billion.
The remaining fundings came from the thrift’s subprime subsidiary, First Franklin, which reportedly originated a record $5.7 billion. Unlike conforming volume, subprime production increased quarter-to-quarter, by 26%, and also year-over-year, by a whopping 139%.
Fundings reflect a $3 billion deduction for “First Franklin portfolio loan originations.”
National City’s servicing portfolio edged up to nearly $147.0 billion at the end of the second quarter and had a default rate of 3.60%, according to the report. In the first quarter, the thrift serviced $144.6 billion in loans and the portfolio had a default rate of 3.15%.
The Cleveland thrift said that its net income totaled $519 million, which is down from the first quarter’s record $710 million, despite that second quarter earnings include the results of Allegiant Bancorp from the date of its acquisition on April 9.
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