Residential loan originations took a big hit at Provident Funding Associates LP, though the lender grew its mortgage servicing portfolio and expanded its staffing.
The Burlingame, Calif.-based firm closed 8,392 home loans for $2.146 billion during the quarter ended Sept. 30, according to Mortgage Daily’s Third Quarter Origination Survey.
New business tumbled from the previous three-month period, when 20,724 residential loans were funded for $5.697 billion.
Mortgage production was down even more significantly when compared to the 32,753 loans originated for $9.869 billion in the third quarter of last year.
During the first nine months of 2013, mortgage production amounted to 53,820 units for $14.719 billion.
Third-quarter 2013 volume included $0.275 billion in retail originations, $1.087 billion in wholesale production and $0.784 billion in correspondent acquisitions. All channels were lower compared to the second quarter, though the decline in correspondent lending was far less significant.
Provident serviced 502,056 mortgages for $115.056 billion as of the end of last month. The total included $52.240 billion in loans serviced for third parties.
The total mortgage servicing portfolio increased from June 30, when 484,568 loans were serviced for $110.713 billion.
The growth in servicing was even more substantial compared to a year earlier, when 354,233 mortgages were serviced for $79.050 billion.
Despite lower production, Provident increased its staffing to 751 employees from 657 people at the end of the second quarter.
Headcount stood at just 486 employees as of Sept. 30, 2012.
