JPMorgan Chase & Co., New York, has reported net income of $3.3 billion ($0.92 per share) for the third quarter, up from $2.5 billion ($0.71 per share) a year earlier, but the company's mortgage banking operations took a net loss of $83 million.A year earlier, the mortgage banking operations had recorded net income of $53 million. The company said mortgage production revenue totaled $197 million in the third quarter, down $32 million from a year earlier and reflecting a 28% decline in mortgage originations, which totaled $28.4 billion. Net mortgage servicing revenue totaled $1 million, which was down dramatically from $163 million in the third quarter of 2005 largely as a result of the negative-$251 million in revenue for the risk management of mortgage servicing rights. The plunge in MSR risk management revenue reflected a $235 million negative valuation adjustment to the MSR asset due to "changes and refinements to inputs and assumptions used in the MSR valuation model," the company said. The company can be found online at http://www.jpmorganchase.com.
