Mortgage income was down at JPMorgan Chase & Co., which doesn’t expect much impact from the new tax law. Home lending and servicing declined.
Prior to income tax expense, the New York-based organization earned $8.3 billion during the three months ended Dec. 31, not as much as $8.7 billion the same quarter in 2016.
Those details, as well as other financial and operational metrics, were
covered in Chase’s fourth-quarter 2017 earnings report released on Friday.
Income also decreased from $9.6 billion in the third-quarter 2017.
The bank-holding company said its mortgage fees and related income retreated to $377 million from $429 million in the third quarter and $511 million in the final quarter of 2016.
The report indicated that new tax rates in effect as a result of the Tax Cuts and Jobs Act will have a small negative impact on the home-lending business as a result of slightly lower home-price appreciation and a “de minimis overall impact to demand.”
From Oct. 1, 2017, through Dec. 31, home-loan originations totaled $26.6 billion, declining from $29.2 billion the prior period and $33.5 billion a year prior.
The latest production included $11.0 billion in retail lending and $13.4 billion in correspondent acquisitions.
For all of 2017, Chase closed $107.6 billion in single-family loans,
less than the $117.4 billion in mortgage production during 2016.
Chase serviced $816.1 billion in residential loans. The servicing portfolio was reduced from $821.6 billion as of Sept. 30 and $846.6 billion as of Dec. 31, 2016.
Last month’s total reflected $553.5 billion in third-party servicing. The ratio of mortgage servicing rights carrying value to third-party servicing was 1.08 percent.
Residential assets grew to $240.090 billion from $239.676 billion at the end of September and $231.492 billion at the end of 2016. Most recently the total consisted of $197.339 billion in mortgages and $42.751 billion in home-equity loans.
Home-lending delinquency of at least 30 days, excluding government-insured and purchased-credit-impaired loans, was 1.19 percent, worsening from 1.03 percent as of Sept. 30. But the rate improved from 1.23 percent as of year-end 2016.
Chase concluded last year with 252,539 people on its payroll. Headcount expanded from 251,503 at the end of the third quarter and 243,355 at the end of 2016.
The 5,130 branches in operation as of year-end 2017 were 44 fewer than three months earlier.
