Mortgage Daily Logo
mortgage news from industry experts

PNC Mortgage Production and Delinquency Down

Residential loan production, mortgage assets and home loan delinquency were all lower at The PNC Financial Services Group Inc. Mortgage earnings, meanwhile, swung to a loss.

Residential mortgage originations in the first quarter of this year were $1.9 billion, the financial institution said in its earnings report.

Business was worse than the prior three-month period’s $2.5 billion in loan volume.

A more than one-half decline was recorded compared to the $4.2 billion funded during the first quarter of last year.

Refinances made up 63 percent of the latest business, up from 59 percent in the previous report.

At $114 billion, PNC’s mortgage servicing portfolio was not changed from the end of the fourth-quarter 2013. It was down $6 billion from 12 months earlier.

As of the close of the first quarter, $14.179 billion in residential loans were owned by PNC, less than the $14.418 billion balance as of the prior report and $14.217 billion total as of the year-earlier report.

On the portion of its residential portfolio that is not government-guaranteed or -insured, the total 30-day delinquency rate was 1.06 percent, falling from 1.17 in the last report and 1.63 percent in the year-earlier report.

The government loan delinquency rate declined to 7.08 percent from 7.88 percent and has tumbled even more compared to 11.06 percent as of March 31, 2013.

Home-equity products accounted for $35.872 billion of the investment portfolio. PNC trimmed its home-equity holdings from $36.447 billion at the end of the prior period and $36.030 billion on the same date in 2013.

The latest home-equity number included $21.277 in home-equity lines of credit and $14.595 billion in home-equity installment loans.

Home-equity delinquency was 0.30 percent, slipping 3 basis points from the end of last year and the same point last year.

Residential construction assets were off at $0.627 billion compared to $0.647 billion as of year-end 2013. Construction loans have been reduced from $0.768 billion at the end of the first-quarter 2013.

Commercial real estate assets ended last month at $22.151 billion, increasing from $21.191 billion at the end of December. The category was just $18.779 billion as of March 31, 2013.

CRE assets as of March 31, 2014 included $14.268 billion in real estate projects and $7.883 billion in commercial mortgages.

CRE delinquency improved 4 BPS to 0.27 percent. A year earlier, the CRE rate was 0.80 percent.

Earnings from residential mortgage banking swung to a $4 million loss from a $55 million fourth-quarter profit. The mortgage business earned $45 million in the first-quarter 2013.

The Pittsburgh-based firm said income before income taxes and non-controlling interests was $1.4 billion at the holding company level, the same as in the third quarter and a year earlier.

Prior period income was minimally revised to reflect the adoption of Accounting Standards Update (ASU) 2014-01, which is related to low income housing tax credits.

Across all PNC businesses, staffing stood at 54,115 as of the end of last month. Headcount, including part- and full-time employees, was down from 54,433 three months earlier and 56,172 twelve months earlier.

PNC closed out the quarter with 2,703 branches, 11 fewer than it started the period at.

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