The chief of Flagstar Bancorp Inc. says third-party originations worsened the TILA-RESPA Integrated Disclosure Rule’s impact.
From Oct. 1 to Dec. 31 last year, the mortgage provider closed new home loans at $5.824 billion.
The information was gained from the Troy, Michigan-based financial institution’s fourth-quarter 2015 financial and operational data.
Flagstar fell behind its third-quarter originations totaling $7.876 billion.
The most-recent quarter activity also failed to surpass the $6.603 billion originated from Oct. 1 to Dec. 31 in 2014.
“We were also impacted by TRID,” Flagstar’s president and chief executive officer, Alessandro P. DiNello, said in the earnings announcement. “Given our predominantly third-party business model, we experienced more of an impact than other bank originators.”
Despite last year’s sluggish fourth quarter, Flagstar’s full-year 2015 mortgage originations reached $29.402 billion — besting full-year 2014 loan volume of $24.608 billion.
During the three months ended Dec. 31, 2015, refinance share climbed to 50 percent from 44 percent in the preceding quarter.
The latest mortgage production total included correspondent acquisitions at $4.1 billion, mortgage broker-loan closings at $1.4 billion and retail originations at $0.3 billion.
Fallout-adjusted rate-lock commitments dipped to $5.0 billion in the fourth quarter from $6.5 billion in the third quarter.
As of Dec. 31, 2015, Flagstar serviced 149,345 loans at $32.233 billion.
The residential loan servicing portfolio was slightly increased from the 148,466 loans serviced at $32.013 billion as of Sept. 30.
As well, the latest total had grown from a year earlier, when there was $29.948 billion in servicing on 144,149 loans.
The most-recent portfolio total included $26.145 in third-party servicing.
Additionally, Flagstar accounted for third-party subservicing at $40.244 billion as of the end of 2015.
The lender’s residential assets increased to $3.619 billion as of the last day of last year from $3.271 billion at the end of September. The latest mortgage investment portfolio also grew from $2.599 billion reported at the same point a year ago.
As of the end of last year, investment loans included residential first mortgages at $3.100 billion, second mortgages at $0.135 billion and home-equity lines of credit at $0.384 billion.
Flagstar also claimed warehouse lending assets at $1.336 billion, a growth from $1.011 billion as of the three-month earlier period and $0.769 billion as of a year prior.
Commercial real estate investment loans grew to $0.814 billion at the end of the fourth quarter from $0.707 billion at the end of the third-quarter 2015. The December-ended amount also was up from the same point in 2014, when the balance was $0.620 billion.
The repurchase pipeline, as of Dec. 31, 2015, dropped to $20 million from $30 million as of Sept. 30.
Company-wide income before income taxes totaled $45 million or $26 million less than third-quarter earnings. Yet, recent income was better than the downwardly adjusted $15 million brought in during the fourth-quarter 2014.
“As we expected, our mortgage revenues were seasonally lower,” DiNello added.
The December-ended headcount last year came to 2,713 full-time employees — 36 more than reported as of Sept. 30 but 26 fewer than claimed as of Dec. 31, 2014.
Flagstar’s December 2015-ended bank branch count remained unchanged from the third-quarter end count of 99.
