Mortgage Daily Logo
mortgage news from industry experts

Fifth Third Struggling

Fifth Third Struggling$2.1 billion Q4 production

January 22, 2009

By MortgageDaily.com staff

Fifth Third Bancorp, which halted a number of mortgage programs last year, saw fundings plummet in the second half of last year. Annual earnings deteriorated by $3 billion and quarterly delinquency jumped by 13 basis points.During 2008, mortgage originations were $11.4 billion, the Cincinnati-based institution reported today. Second-half 2008 fundings of $4.1 billion tumbled from $7.3 billion in the first half. But fourth-quarter 2008 originations were $2.1 billion, edging higher than $2.0 billion in the third quarter.

The mortgage servicing portfolio was $40.4 billion at the end of 2008.

Residential mortgage holdings ended last year at $9.4 billion, about the same as at the end of September. Home-equity holdings were $12.8 billion, increasing from $12.6 billion.

Residential delinquency of at least 90 days was 2.11 percent at the end of the fourth quarter, climbing from 1.98 percent three months earlier and 1.76 percent 12 months earlier. Home-equity delinquency was 1.58 percent, climbing from 1.33 percent on Oct. 31 and 1.25 percent on Dec. 31, 2007.

Commercial mortgages outstanding were $12.5 billion on Dec. 31, down from $13.4 billion on Oct. 31. Commercial construction loans owned were $5.1 billion, down from $6.0 billion.

The company reported a $2.1 billion loss during 2008 — far worse than the $1.1 billion profit in 2007.

Fifth Third said it had a fourth-quarter 2008 loss of $2.1 billion, souring from an $0.1 billion third-quarter loss and a profit of less than $0.1 billion a year earlier.

The report indicated that the institution suspended the origination of residential homebuilder and developer loans, commercial non-owner occupied loans and all mortgage broker home-equity loans. It also implemented more stringent underwriting standards..

Fifth Third noted that it sold approximately $3.4 billion in preferred shares to the U.S. Department of the Treasury under the capital purchase program.

The bank said it had 21,476 full-time employees as of Dec. 31, off from 21,522 on Oct. 31.


Fifth Third profile
 

next story

back to current headlines
 

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...

Newsletter

Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts

THE TRUSTED PROVIDER OF ACCURATE RATES AND FINANCIAL INFORMATION