The residential mortgage banking business at PNC Financial Services Group Inc., Pittsburgh, earned $71 million in the first quarter 2011, up from $3 million in the fourth quarter 2010 but down from $78 million in the first quarter 2010. The increase from the fourth quarter was due to lower foreclosure-related expenses, increased loan sales revenue and higher net hedging gains from its mortgage servicing rights portfolio.
The change from the first quarter 2010 was a result of a higher provision for credit losses, lower servicing fees, lower net interest income and higher noninterest expenses.
PNC had origination volume of $3.2 billion for the first quarter, down from $3.5 billion for the fourth quarter and up from $2.0 billion in the first quarter 2010.
Its servicing rights portfolio as of March 31 is $127 billion, an increase of $2 billion from the start of the quarter. PNC said that while loan payoffs continue to outpace new production, it acquired $4.6 billion of servicing rights on March 31.
