B of A Has 13% Increase in Mortgage Originations in Third Quarter

Bank of America originated $13.7 billion of first-mortgage loans and $3.1 billion of home equity loans during the third quarter, the company said in its quarterly earnings release.

For first mortgages, this was a 13% increase over the $11.7 billion originated for the same period in 2014. The bank did $3.2 billion in HELs one year ago.

Higher mortgage banking income was one of the contributing factors to B of A's 2% year-over-year increase in noninterest income. B of A had net income of $4.5 billion for the quarter, compared with a net loss of $232 million for 2014's third quarter.

B of A's noninterest expense declined by 1% from the third quarter of 2014 and the company said it used some of the savings to add 300 sales people, including mortgage originators, financial advisors and small business bankers.

Its Legacy Assets and Servicing unit reported it serviced 114,000 first-mortgage loans where the payments were 60 days or more late, down 14% from the second quarter and 48% from the third quarter of 2014. As a result, LAS saw its mortgage servicing fee income drop by 27% from the year-ago quarter to $345 million.

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