Bank of America Mortgage Production Plummeted From $14.5 Billion In The 2nd Quarter To $8.7 billion In 3rd Quarter
Bank of America mortgage production plummeted to $8.7 billion in the 3rd quarter. However, it was not all bad news. The bank delivered increases in revenues and net income in the third quarter of 2022. This indicates that some of its business lines were not walloped by high inflation and economic contraction.
Overall, the bank recorded $7.1 billion in net income from July to September. Thus, besting the $6.2 billion in the second quarter of 2022. BofA saw profits lower than the $7.7 billion recorded in the third quarter of 2021. However, they came in above analysts’ expectations.
BofA customers’ deposits remained above $1 trillion for the fifth straight quarter. The bank also saw gains in the consumer banking division increased to $3 billion in the third quarter. This compared to $2.8 billion in the previous quarter.
Mortgage originations totaled $8.7 billion during the third quarter, a 40% drop from $14.5 billion recorded in the second quarter and 59% below the $21 billion notched in the third quarter of 2021.
BofA’s home equity originations fell slightly in the third quarter. Home equity originations fell to $2.4 billion from $2.5 billion in the second quarter. Still, it was up significantly from the third quarter of 2021.
BofA had $229 billion in outstanding residential mortgages on its books through Sept. 30, up from $228 billion in the second quarter and $217 billion in the third quarter of 2021.
The home equity portfolio was $27 billion at the end of the third quarter. This is down from $29 billion a year prior.
Bank of America’s total MBS reached a $32 billion fair value as of September 30. It was $44 billion as of June 30.
The bank reported a consumer net charge-off of $459 million in the third quarter. This is a decrease of $66 million from the previous quarter.
Anticipating further turbulence, BofA added $378 million to its reserves to cover future loan losses.
This Article Originally Appeared On MFI-Miami