Citigroup reported net servicing and gain-on-sale revenue of $684 million in the third quarter—more than triple what it did a year ago, according to the bank’s third-quarter earnings statement.
The bank also reported third-quarter residential production of $14.5 billion, a 15% decline from the same period a year ago. Compared to the second quarter, the bank’s home mortgage fundings grew by 15%.
In February,
Although Citi reported strong GOS, it has been steadily marking down the asset value of its residential mortgage servicing rights. At Sept. 30 it valued its MSRs at $1.9 billion, a stunning 32% decline from a year ago.
Its $185 billion of third-party servicing shrunk 3% from the second quarter and 6% from a year ago.
