Mortgage banking income at BB&T Corp., was down by $46 million between the third and fourth quarters for reasons related to the residential mortgage business. When the fourth quarters of 2009 and 2010 are compared, mortgage banking income was down $4 million due to servicing-related issues.
The Winston-Salem, N.C.-based company had mortgage banking income of $138 million for the fourth quarter, vs. $184 million in the third quarter and $142 million in the fourth quarter 2009.
Between the third and fourth quarters, residential mortgage banking income was down $52 million, of which $40 million is a result of lower gains on warehouse loans, BB&T said. The decline was partially offset by a $6 million increase from its commercial banking business due to improved market conditions.
The fourth quarter year-over-year decline in mortgage banking income was because of a $19 million drop in residential mortgage banking, of which $13 million is from an unfavorable net change in the value of its mortgage servicing rights and hedging activities.
However, commercial mortgage banking income increased by $15 million due to improved market conditions.
