Mortgage originations at JPMorgan Chase dropped 29% since the end of 2010, kicking off a year where industry-wide originations are projected to drop below $1 trillion.
JPM originated $36.2 million in mortgages—more than 180,000 loans—in the first quarter of 2011, down from nearly $51 million in 4Q10, but up 14% from 1Q110.
While all origination channels declined, the quarter-over-quarter drop was attributed primarily to JPMorgan's correspondent channel, which saw origination volume decline 47% to $13.5 million.
Application volume fell nearly 22% from 4Q10 to 45.2 million, but remained 15% higher than application volume in 1Q10.
More than $1 billion of JPM's $1.3 billion provision for credit losses was reserved for mortgage and real estate-related loans, including loss provisions of $720 million for home equity loans and $186 million for subprime mortgages. But the total credit loss provision was down 46% from 4Q10.
JPM's mortgage banking unit recorded a net loss of $114 million, down 112% from a profit of $962 million in 1Q10. JPM reported total net income of $5.6 billion in 1Q11 Wednesday.
The portfolio of nonperforming assets in JPM's mortgage banking, auto and other consumer lending unit was $931 million in 1Q11, down about 7% from both the previous and prior year quarters. Its 30-day delinquency rate was 1.59%, down from 1.68% in 4Q10.
Excluded from that figure are nonperforming assets insured by U.S. government agencies—$9.8 billion in 90-day delinquent mortgages and $2.3 billion in real estate owned properties. The value of the mortgages was down about 7% from the fourth quarter, while the REO value was up about 2% from the same period.
