The mortgage banking division of PNC Financial Services lost $61 million in the fourth quarter due to what the bank called “foreclosure-related expenses primarily as a result of ongoing governmental matters.”
In 3Q the bank's residential mortgage arm earned $22 million. In 4Q 2010 it posted a small profit of $3 million.
Its non-accruing loans increased slightly to $4.5 billion at yearend with PNC blaming the uptick on “purchased government insured loans.”
A few weeks ago PNC was contemplating buying part of MetLife's residential production division.
Meanwhile, PNC originated $3 billion of one- to four-family loans during the period, a 15% increase from 3Q but down from the $3.5 billion funded in the fourth quarter of 2010.
The entire bank posted a profit of $493 million in 4Q but suffered a $156 million charge due to foreclosures.
