BB&T nets $210 million in 3Q, foreclosure process "sound"
BB&T Corp. (BBT) earned $210 million in the third quarter, or $0.30 per diluted common share, up 30% from a year ago. The bank earned $184 million in mortgage banking revenue, an increase of 27% from the third quarter of last year. The growth came from more refinancing activity due to low mortgage rates. BB&T originated $6.7 billion in mortgages in the third quarter, up 34% from the second quarter but down from $6.9 billion a year ago. BB&T CEO Kelly King said the bank accelerated its asset disposition strategy, selling $451 million in loans and foreclosed properties in the third quarter and put another $350 million under contracts to sell. King said the bank found no issues after an internal review of its foreclosure process. "Knowledgeable specialists" reportedly signed affidavits properly, and the bank did not participate in the private-label securitization that caused problems with assignments in other banks. BB&T was the 15th largest mortgage servicer in the U.S. in 2009, holding more than $87.1 billion of loans in its mortgage servicing portfolio. "We operate a relatively low risk mortgage business model and we believe our foreclosure process is sound," King said. "It truly is a values-based approach where we work with our clients." Write to Jon Prior.