Citigroup Inc. pushed quarterly home lending activity higher but saw earnings plummet thanks to a huge settlement over its mortgage securities activities.
North American mortgage originations during the second quarter were $6.2 billion, the New York-based company said in its earnings report released Monday.
Business improved from the prior quarter, when $5.2 billion in production was generated.
For the entire first-half 2014, home loan originations amounted to $11.4 billion.
Second-quarter activity, however, sank compared to the same three-month period in 2013, when Citi funded $17.2 billion.
The third-party mortgage servicing portfolio within the retail banking division was trimmed to $175.9 billion from $178.8 billion as of March 31. The portfolio was $177.9 billion as of June 30, 2013.
In addition, Citi Holdings serviced another $69.9 billion for third parties, slashing its portfolio from $88.4 billion three months earlier and $116.7 billion a year earlier.
Real estate lending assets within the North America consumer banking division grew to $36.4 billion from $35.1 billion and were also up from $32.2 mid-year 2013.
Delinquency of at least 30 days on the investment portfolio, excluding government-guaranteed loans, was unchanged from the first quarter at 0.95 percent but better than 1.25 percent as of June 30, 2013.
Mortgage assets at Citi Holdings were $66.9 billion, off from $70.9 billion at the end of March and $79.8 billion at the same point last year. The June 30, 2014, total included $40.0 billion in residential first mortgages and $26.9 billion in home-equity loans.
Delinquency on residential assets carried within Citi Holdings was 6.87 percent, worsening from 6.63 percent in the previous quarter. But the rate has fallen from the second-quarter 2013, when it stood at 7.61 percent.
Income from continuing operations before income taxes at the parent company plunged to $2.1 billion from $6.0 billion in the first quarter and $6.3 billion in the second-quarter 2013.
The sharp drop in earnings reflected a $7 billion settlement announced Monday to resolve an investigation by the Residential Mortgage-Backed Securities Working Group. Citi said it took a $3.8 billion charge for the settlement in the second quarter.
Citi finished June with 244,000 company-wide employees, 4,000 fewer than three months earlier and 9,000 less than a year earlier.
Branch count within global consumer banking was cut to 3,463 from 3,601 at the end of the first quarter.
Another 1,458 branches were operated by Citi Holdings, one less than in the first quarter.
