Fifth Third Sees Higher MSR Value
Fifth Third Bancorp earned $40 million in revenue from mortgage banking in the first quarter, down from $47 million in the first quarter of last year.
Fifth Third said that origination fees and gains on the sale of loans totaled $26 million in the first quarter of this year, compared with $21 million in the first quarter of last year.
Net mortgage servicing revenue, before adjustments to the value of the mortgage servicing rights, totaled $13 million in the first quarter of 2007, down slightly from $14 million a year earlier.
The company reported a "modest positive adjustment" in the value of its MSRs, net of related hedging instruments. In the year-earlier period, Fifth Third netted an $11 million gain on the value of its MSRs. That gain in the first quarter of 2006 boosted the company's mortgage results for that period.
The company serviced $30.3 billion of mortgage loans as of March 31 and valued its MSR asset at $566 million.
Bucking an industry trend, Fifth Third saw its charge-offs decline in the first quarter. (c) 2007 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com http://www.sourcemedia.com