Originations Rise Nicely at U.S. Bancorp, Buybacks Low

U.S. Bancorp Wednesday morning reported mortgage and retail related originations of $24.5 billion in the fourth quarter, double of what it funded in home mortgages in 3Q.

A top 10 ranked funder, USB said mortgage banking income rose by $53 million – 21% – over 4Q 2010 “principally due to higher origination and sales revenue.”

In its fourth quarter earnings report, the Minneapolis-based bank boasted that its loan buyback problems are small and are much lower than its peers “due to conservative credit and underwriting culture.” It also noted that it was never much of a player in the “private placement securitization market.”

In 4Q USB repurchased (or made whole on) $61 million of residential loans sold into the secondary market, a slight uptick from 3Q. In 4Q 2010 it repurchased $69 million of home mortgages.

According to the bank’s earnings statement, USB is holding more residential mortgages on its balance sheet: $36.2 billion compared to $29.6 billion a year earlier.

Company-wide, the bank earned $1.35 billion in 4Q, a 38% gain from the same period a year earlier.

Article source: http://www.nationalmortgagenews.com/dailybriefing/2010_518/originations-rise-us-bancorp-1028385-1.html

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