Банк Америки (BofA) and Сити reported declining mortgage production in the first quarter of 2025 compared to the previous quarter, following similar results from peers Компания "Уэллс-Фарго и Джей Пи Морган Чейз на прошлой неделе.
Mortgage volumes at BofA and Citi, which were attributed to seasonal trends and rising interest rates, are expected to remain challenged in the coming quarters due to ongoing trade tensions and broader macroeconomic uncertainty.
Банк Америки chair and CEO Brian Moynihan said in a statement that the bank’s clients “have been performing well, consumers have shown resilience, continuing to spend and maintaining healthy credit quality.” But he added that “[we] potentially face a changing economy in the future.”
Speaking to analysts, Moynihan also said that “there’s a lot that could potentially change given the uncertainty around the тарифы and other policies in the future path of the economy. However, the bank’s research team does not currently believe we’ll see a рецессия in 2025.
“They’ve lowered their GDP growth rates for 2025 and continue to see no rate cuts during ’25, but expect as инфляция gets under control, you may see them in the future, i.e., in 2026.”
From January to March, BofA funded $4.5 billion in first-lien mortgages — a 31.5% decline from $6.5 billion in Q4 2024 but up 30.9% from $3.4 billion in first quarter of last year. In the home equity space, BofA originated $2.2 billion in Q1 2025, down slightly from $2.3 billion in Q4 2024 and up from $1.9 billion in Q1 2024.
Chief financial officer Alastair Borthwick said that BofA purchased an $8 billion portfolio of residential mortgages during the first quarter, an investment that is “high in quality” and expands “relationships with customers beyond those mortgage loans.”
“We expect these loans to add just over $100 million in NII (net interest income) annually,” Borthwick said.
As of March 31, BofA’s total mortgage-backed securities portfolio had a fair market value of $81 billion, up from $76.4 billion at year-end 2024.
Similar trends
Сити originated $3 billion in Q1 2025, down 33% quarter over quarter and 10% year over year. On Friday, JPMorgan reported Q1 mortgage volume of $9.4 billion, down 22% from the prior quarter but up 42% year over year. At Wells Fargo, volume dropped to $4.4 billion in Q1, a 25% quarterly decline but still up 26% annually.
Nonbank mortgage lenders — including Ракетная ипотека, Объединенная оптовая ипотека, кредитдепо, Пеннимак, Ньюрез и мистер Купер — are expected to release their Q1 earnings in the coming weeks.
Since the 2008 financial crisis, depository institutions have faced mounting regulatory pressure, which has affected mortgage earnings. While the current trade war introduces new uncertainties, some banks believe that a deregulatory agenda could offer potential relief.
“The world is in a wait-and-see mode and is facing a more negative macro outlook than anyone had anticipated at the beginning of the year — and we know that prolonged uncertainty generally hurts confidence,” Citi CEO Jane Fraser told analysts.
« changes underway globally will go beyond trade and tariffs. In the U.S., for example, regulation and tax policy are all likely to look different in a year’s time,” Fraser added.
According to Fraser, Citi welcomes “changes being discussed in our own industry to place more focus on material financial risks and to make it easier for banks to contribute to economic growth and to improve client service.”
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