Servicer Settlement Cuts Slightly Into U.S. Bancorp Earnings

By Brad Finkelstein

Published January 16, 2013, 12:37 p.m. EST

1 Min Read

The mortgage servicer settlement with federal regulators resulted in an $80 million fourth-quarter expense accrual for U.S. Bancorp, reducing its earnings per share by $0.03. Overall, the company earned $1.4 billion in the fourth quarter and $5.6 billion for the full year, up 5.2% and 15.9% over the same periods in 2011.

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U.S. Bancorp said it had $29 billion of mortgage and other retail loan origination, plus $40 billion of new and renewed commercial and commercial real estate commitments in the fourth quarter.

Mortgage banking revenue was $476 million for the quarter and $1.9 billion for the year, up 57% and 97% over the same periods in 2011. This was due to higher origination and sales revenue and an increase in loan servicing revenue.

Residential mortgage loan net charge-offs in 4Q12 was $96 million, an improvement over $119 million in 4Q11.

The company reported mortgage repurchases and make-whole payments totaling $57 million, with outstanding requests of $131 million.

Brad Finkelstein

Originations Editor

Brad Finkelstein is the originations editor of National Mortgage News. While he covers the entire process, Brad's specialty is loan production and... Read full bio

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