$17.7 billion 1st quarter production
By MortgageDaily.com staff
4/19/2005

Originations fell from the prior quarter and year at National City Corp., and the current level of loans in process indicates no increase is on the horizon.

First quarter mortgage production was $17.7 billion, according to supplemental data provided in an earnings announcement today, off from $19.4 billion the prior quarter and $18.6 billion during the first quarter 2004.

Production at subprime subsidiary First Franklin was reported at $3.9 billion, down from $4.4 billion during the fourth quarter and $4.6 billion reported for the first quarter a year ago.

First Franklin fundings reflected a reduction of $1.7 billion for "loans originated for sale," while total fundings reflected a reduction of $1.3 billion for National City Mortgage "originations for sale."

More than half (57%) of National City Mortgage's originations were for refinances, according to the report, while ARMs made up 38%.

"Home equity loan production continues to be strong, and credit quality is good across the board," said CEO and Chairman David A. Daberko in the announcement.

National City said its current pipeline of applications is $35.1 billion -- the second lowest level in two years.

National City Mortgage's servicing portfolio was $155.1 billion, the Cleveland-based mortgage banker said, made up of more than a million loans.

National City reported first quarter net income of $484 million, or $0.74 per diluted share.

"Earnings per share comparisons to a year ago and the fourth quarter are distorted by large gains from mortgage hedging and divestitures, respectively," Daberko said. "Mortgage-related activities, as expected, are now earning at more normal rates following the 2003-2004 period when we took advantage of the largest mortgage volumes in U.S. history."

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