The Federal Deposit Insurance Corp. said Tuesday that the 1,085 banks and thrifts required to report origination figures to the agency earned $8.8 billion of non-interest income from the sale, securitization and servicing of one-to-four family loans, a 14% improvement from the second quarter.
Overall, banks and thrifts reported total earnings of $37.6 billion in the third quarter, the highest in six years.
“This is the 13th quarter in a row that quarterly net income has posted year-over-year improvement,” FDIC chairman Martin Gruenberg said in a press briefing.
Insured depositories also purchased $309 billion of closed-end single-family loans through third-party production channels, compared to $285 billion in 2Q. The reporting institutions also sold $508 billion of home mortgages during 3Q.
The FDIC chairman noted that most of the improvement in third-quarter earnings came from loan sales.
Meanwhile, the new report also shows a decline in repurchase and indemnification demands from investors, such as Fannie Mae and Freddie Mac. Buyback demands totaled $2.9 billion, compared to $3.5 billion in the second quarter.
The FDIC only requires insured depositories that originate more than $10 million of residential loans in a quarter or have $1 billion or more in assets to report mortgage origination data.