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| A drop in mortgage broker business helped push residential originations lower at JPMorgan Chase & Co.
Mortgage production was $50.4 billion during the third quarter, according to earnings data released today from the New York-based company. Originations fell from $58.7 billion the prior quarter but were better than a restated $42.3 billion a year earlier. Home equity originations accounted for $11.2 billion of the latest period’s activity, JPMorgan said. Volume fell from $14.6 billion during the second quarter and $13.3 billion a year earlier. Excluding home equity business, third quarter retail originations were $11.1 billion, the report said. Mortgage broker business dropped around 23 percent from the second quarter to $9.8 billion, while correspondent lender activity rose 13 percent to $7.2 billion. As of September 30, the third party mortgage servicing portfolio was $600.0 billion, according to the data. The parent of Chase Home Finance held $93 billion in home equity loans and $12.3 billion in mortgages on its balance sheet. Delinquency on the company’s $12.1 billion subprime portfolio was reported around 12 percent at the end of the quarter while delinquency on its $93 billion home equity portfolio was around 1.5 percent. Prime mortgage delinquency edged closer to 2 percent. Overall delinquency for all retail financial services was 2.39 percent. JPMorgan said it has halted subprime home equity originations and tightened underwriting on prime home equity lending. The financial conglomerate reportedly employed 179,847 people as of Sept. 30, including 68,528 in retail financial services. Third quarter net income was $3.4 billion, compared to $4.2 billion the previous quarter, the report said. For just mortgage banking, a $48 million net loss was reported. |
