Quarterly home-lending volume accelerated at JPMorgan Chase & Co., while the financial institution’s human resource assets have been expanding.
In its fourth-quarter 2016 earnings report, Chase said income before taxes was $8.7 billion. Income was trimmed from
$8.9 billion the prior period.
But earnings at the New York-based business improved from the same three-month time frame in 2015, when pre-tax income came to $7.4 billion.
JPMorgan Chase Chairman and Chief Executive Officer Jamie Dimon seemed optimistic about the current economic environment.
“The U.S. economy may be building momentum,” Dimon said in the report. “Looking ahead there is opportunity for good, rational and thoughtful policy decisions to be implemented, which would spur growth, create jobs for Americans across the income spectrum and help communities, and we are well positioned to play our part. Business plays a critical positive role in society, and in collaboration with nonprofits, governments and educational institutions, it can help strengthen our economy and our country.”
Revenues generated by the mortgage banking
business fell to $1.690 billion from $1.874 billion in the third-quarter 2016. Mortgage revenues were mostly the same as $1.680 trillion in the final three months of 2015.
Mortgage fees and related income totaled $510 million, less than $624 million the prior quarter and $556 million a year prior. Fourth-quarter 2016 income consisted of
$183 million in net production revenue and $327 million in net mortgage servicing revenue.
Residential loan originations during the final three-month period of 2016 totaled $33.5 billion. Business grew from an upwardly revised $30.9 billion in the third quarter. Lending also improved from an upwardly revised $24.7 billion in the fourth-quarter 2015.
Starting with this story, Mortgage Daily reported mortgage production based on “firmwide mortgage origination volume” footnotes instead of the “total mortgage origination volume” from consumer and community banking reported in the main part of the page, which reflected just $29.1 billion for the fourth-quarter 2016. Prior quarters were also revised going back to the first-quarter 2015.
Fourth-quarter 2016 production from just the consumer banking unit consisted of $12.7 billion in retail originations and $16.4 billion in correspondent originations.
Full-year 2016 originations of $117.4 billion improved slightly upon the upwardly revised $115.2 billion
one year earlier.
Chase serviced $846.6 billion in mortgages as of the end of last year, less than $863.3 billion three months earlier and $910.1 billion one year earlier.
Third-party servicing made up $591.5 billion of the latest total. The ratio of the carrying value for mortgage servicing rights on its third-party MSRs was 1.03 percent, up from 0.80 percent three months previous.
Thirty-day delinquency on its mortgage banking portfolio, excluding government and purchased credit-impaired assets, was 1.23 percent. Residential performance improved from Sept. 30, 2016, when the rate was 1.27 percent, and 2015, when it finished the year at 1.57 percent.
On the PCI portfolio, delinquency improved to 9.82 percent from 10.01 percent and has tumbled from 11.21 percent as of year-end 2015.
The community banking payroll grew to 132,802 people from 132,092 as of the close of the third-quarter 2016. Staffing also expanded from 127,094 employees at the end of 2015.
Headcount across the entire Chase organization concluded last year at
243,355 people. The financial institution grew staff from 242,315 as of the end of the third quarter. The payroll has expanded each quarter since the fourth-quarter 2015, when there were 234,598 employees.
Branch count was cut to 5,258 from 5,310 at the end of September 2016.
