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Chase’s Mortgage Earnings Jump on Servicing

Company-wide quarterly earnings soared at JPMorgan Chase & Co., while mortgage income jumped on soaring servicing revenue. Loan originations sank, and servicing dropped.

In its first-quarter earnings report, Chase indicated that income before income tax expense was $11 billion during the first-three months of this year.

Earnings at the New York-based financial institution jumped from the $8 billion
that was earned both in the prior period and in the same three-month period last year.

Mortgage fees and related income climbed to $465 million from $378 million in the fourth-quarter 2017 and $406 million in the first-quarter 2017.
Most recently, income was comprised of $95 million in production income, sinking from $185 million in the previous quarter, and $370 million in net servicing income, soaring from $193 million.

Home-lending volume was $20.0 billion, sinking from $26.6 billion three months earlier and $25.8 billion one year earlier.

Retail lending accounted for $8.3 billion of the latest volume from just the $18.2 billion generated within the consumer and community banking unit, while correspondent acquisitions were $9.9 billion.

Chase said it serviced $804.9 billion in residential loans, including $539.0 billion in third-party servicing. The total servicing portfolio was reduced from $816.1 billion as of Dec. 31, 2017, and $836.3 as of the same date last year.

The ratio of mortgage-servicing rights to loans serviced was 1.15 percent, while the MSR revenue multiple was 3.19.

Mortgage assets concluded March 2018 at $240.325 billion, not much different than $240.090 billion at the end of last year but more than $233.348 billion at the same point last year. Last month’s balance consisted of $199.548 billion in mortgages and $40.777 billion in home-equity loans.

Chase slashed its 30-day home lending delinquency to 0.98 percent from 1.19 percent as of year-end 2017 and 1.08 percent at the end of the first quarter of last year.

Within its consumer and community banking division, staffing fell to 133,408 employees from 133,721 but was up from 133,176  as of the same date in 2017.

Firm-wide headcount concluded last month at 253,707 people, more than 252,539 at the end of last year and 248,345 at the same point last year.

Chase closed out the first quarter with 5,106 branches, 24 fewer than as of Dec. 31, 2017.

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