JPMorgan Chase & Co. reported increases in retail and correspondent residential lending in the third quarter with pre-tax production income rising more than 70% on a sequential basis.
As part of its earnings, JPM disclosed that residential fundings totaled $36.8 billion in 3Q, up 8% from the prior quarter. But compared to 3Q 2010, originations declined 14%, according to figures compiled by National Mortgage News.
In 3Q retail production at the bank increased 8% to $22.4 billion. Correspondent lending jumped 30% to $13.4 billion quarter over quarter.
JPM, which lends under the trade name Chase, posted pre-tax mortgage production income of $493 million, after recording a $314 million loss due to loan repurchases and an increase in production expenses.
Its production expense was $497 million, up $40 million from the second quarter, "reflecting a strategic shift to higher-cost retail originations both through the branch network and direct to the consumer," Chase said.
