Fourth Quarter Mortgage Originations Slide at Citi, BofA

January 16, 2009 No Comments »


Bank of America saw total mortgage production of $44.6 billion in the fourth quarter, down from $51.5 billion in the third quarter, but nearly double the $24.5 billion seen a year earlier thanks to its acquisition of former top mortgage lender Countrywide.

At the same time, home equity loan originations slipped to just $5.3 billion from $7 billion a quarter earlier and $19.3 billion a year ago.

Total mortgage production for 2008 was $140 billion, up from $104 billion in 2007, while home equity production fell to $40 billion from $84 billion a year ago.

Meanwhile, non-performing loans skyrocketed, with a whopping $7 billion in residential mortgages in arrears, up from $4.6 billion in the third quarter and $2 billion a year ago.

Non-performing home equity loans totaled $2.7 billion, up from $2 billion a quarter earlier and $1.3 billion this time last year.

Citi Originations Drop, Lates Double

Over at troubled Citibank, fourth quarter mortgage originations totaled a mere $16.6 billion, down from $22 billion in the third quarter and off 48 percent from $32 billion a year earlier.

For the year, total loan origination volume were $104.3 billion, down 36 percent from $163.3 billion in 2007.

Loans 90 days or more past due increased 93 percent from a year ago, accounting for 4.73 percent of the company’s third-party servicing portfolio.

Citi also announced today that it would split into two operating units, Citicorp and Citi Holdings.

Citicorp will handle the company’s traditional banking activities, while Citi Holdings will handle the firm’s non-core businesses and riskier investment assets.

(photo: bobjagendorf)

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