Third-quarter originations fell to $40.5 billion, down 17% from the second quarter, and mortgage banking income fell 38% to $705 million in the third quarter.
Chase executives expected the mortgage sector would be a drag on earnings and they strained to highlight bright spots during a conference call Friday morning.
Chase chief financial officer Marianne Lake pointed out that purchase mortgage originations rose 57% from 2Q to $20 billion in 3Q.
And Chase chairman and chief executive Jamie Dimon pointed out that losses on mortgage servicing are improving steadily as delinquencies continue to decline.
The giant bank took a $406 million loss on mortgage servicing in 3Q compared to reporting $133 million in income for the 2Q.
Chases retail channel reported $17.7 billion in originations for 3Q, down from $23.3 billion the prior quarter. Its correspondent channel fared better with $22.8 billion in originations, down from $25.6 billion in 2Q.