PNC Reports Growth in Originations

first_img October 16, 2012 440 Views Growth in mortgage originations helped spur “”PNC Financial Services””:https://www.pnc.com/webapp/unsec/Homepage.do?siteArea=/PNCCorp/PNC/Home/Personal to overall income gains in the third quarter, the institution reported.[IMAGE]PNC recorded net income of $925 million in Q3, an 11 percent year-over-year increase from $834 million. PNC’s total net income for the first three quarters was $2.3 billion, down from $2.6 billion in the same period last year.Part of PNC’s quarterly increase can be attributed to a rise in residential mortgage banking revenue, which grew $35 million “”due to higher loan sales revenue driven by higher loan origination volume partially offset by lower net hedging gains on mortgage servicing rights,”” the company said. Loan origination volume increased $1.2 billion from third-quarter 2011 to $3.8 billion, while PNC’s residential mortgage servicing portfolio decreased approximately $2 billion to $119 billion.The increase in origination brought with it an increase in noninterest expense (to $226 million), stemming mostly from servicing costs. Some of those costs were offset by a decrease in foreclosure-related expenses, PNC said.The company set aside only $37 million for repurchase obligations, a massive drop from $438 million in the second quarter. The decrease may signal PNC is less worried about Fannie Mae and Freddie Mac forcing buybacks on loans gone bad.PNC also revealed approximately 30 percent of loan originations were revised under HARP. The fair value of mortgage servicing rights fell about $100 million from third-quarter 2011 to $600 million, primarily due to lower mortgage interest rates, the company said. in Data, Government, Origination, Secondary Market, Servicing Sharelast_img

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