Servicer Settlement Cuts Slightly Into U.S. Bancorp Earnings
The mortgage servicer settlement with federal regulators resulted in an $80 million fourth-quarter expense accrual for U.S. Bancorp, reducing its earnings per share by $0.03. Overall, the company earned $1.4 billion in the fourth quarter and $5.6 billion for the full year, up 5.2% and 15.9% over the same periods in 2011.
U.S. Bancorp said it had $29 billion of mortgage and other retail loan origination, plus $40 billion of new and renewed commercial and commercial real estate commitments in the fourth quarter.
Mortgage banking revenue was $476 million for the quarter and $1.9 billion for the year, up 57% and 97% over the same periods in 2011. This was due to higher origination and sales revenue and an increase in loan servicing revenue.
Residential mortgage loan net charge-offs in 4Q12 was $96 million, an improvement over $119 million in 4Q11.
The company reported mortgage repurchases and make-whole payments totaling $57 million, with outstanding requests of $131 million.