SunTrust Banks reported mortgage production income of $103 million for the second quarter, compared with $63 million in 1Q12 and a mere $4 million in 2Q11.
The change between the first and second quarters was due to $18 million in net gains from the sale of government-guaranteed mortgages and a $20 million decrease in the bank’s repurchase provision.
Still, SunTrust added $51 million to the repurchase provision, bringing it to $434 million, noting the continued relatively high level of repurchase demands and the timing of demand resolution.
The year-over-year increase is due to higher loan production and increased gain-on-sale margins.
Servicing income totaled $70 million for 2Q12, down from $81 million in 1Q12 because of a less favorable hedge performance.
The mortgage servicing rights portfolio grew to $163 billion on June 30 from $153 billion one year prior.
