Although Bank of America bucked market expectations by raising more mortgages quarterly in the fourth quarter, the bank saw a significant year-over-year volume decline.
The Charlotte, NC-based bank reported $ 13.7 billion in the fourth quarter, up from $ 13.4 billion in the third quarter, up from $ 22.1 billion in the fourth quarter of 2019.
For the industry as a whole, Fannie Mae expected production to decline nearly 7% in the fourth quarter from the third quarter to $ 1.24 trillion versus $ 1.32 trillion.
Wells Fargo and PNC reported lower volume among their major banking competitors compared to the third quarter, while JPMorgan Chase had increased volume and Citi was flat.
Bank of America reports mortgage volumes from two business areas. In consumer banking alone, the volume was just under $ 8 billion in the fourth quarter, compared to $ 7.3 billion in the third quarter and $ 14.6 billion in the fourth quarter of 2019. The remaining volume comes from the global Wealth and Investment Management segment, which works with the wealthy and wealthy customers of BofA.
The bank's total first mortgage volume for 2020 was $ 69.1 billion, up from $ 72.5 billion in 2019. If only consumer banking output is measured, the BofA is $ 43.2 billion down from $ 49 . $ 2 billion made in 2019.
The decline in annual volume is noteworthy as industry economists believe the final 2020 figures will show production growth over 2019. Fannie Mae forecast a record $ 4.4 trillion in 2020 (up from $ 2.5 trillion in 2019).
Home financing for the year decreased from $ 11.1 billion a year ago to $ 8.2 billion in 2020. For consumer banking alone, home production fell from $ 9.8 billion to $ 6.9 billion.
The distressed residential mortgage loan increased to $ 2 billion in the fourth quarter from $ 1.7 billion in the third quarter and $ 1.4 billion in the fourth quarter of 2019.
At the same time, bad home equity loans rose to $ 649 million from $ 640 million in the previous quarter and $ 536 million a year earlier.
Distressed commercial real estate loans decreased from $ 414 million in the third quarter to $ 404 million in the fourth quarter, from $ 280 million in the fourth quarter of 2019.
BofA does not split mortgage lending income separately, but the company reported $ 51 million in non-interest-bearing consumer credit income in its consumer banking segment in the fourth quarter, compared to $ 8 million in the third quarter and $ 65 million in the fourth quarter of 2019 .
For the full year, the company reported noninterest income of $ 164 million, compared to $ 294 million in 2019.