Thrifts Post Record 1Q Earnings

Thrift institutions originated $141.5 billion in single-family loans in the first quarter, down 8% from the volume in the previous quarter, but they still posted record earnings of $4 billion.The Office of Thrift Supervision reported that higher mortgage servicing fee income and declines in loan-loss provisions and noninterest expenses contributed to the record earnings. Servicing fee income rose from $405.1 million in the fourth quarter to $740.6 million in the first quarter. The OTS also reported that single-family originations are 22% higher than a year ago and that adjustable-rate mortgages constituted 50% of first-quarter loan originations -- which is slightly higher than the level of a year ago, but down from 62% in the fourth quarter.