Each of the “big-four” banks, Bank of America (BAC), Wells Fargo (WFC), JPMorgan Chase (JPM) and Citigroup (C) released quarterly earnings reports for Q210 in July, reporting a total increase of $9.5bn in nonperforming or foreclosed properties from the same quarter last year. Each bank categorized the foreclosed properties into different definitions, and some include commercial properties. Bank of America reported $35.7bn in nonperforming loans, leases and foreclosed properties in Q210, a $4.9bn or 15% increase from $30.9bn reported a year ago, according to its financial supplements. Wells Fargo reported $4.9bn in foreclosed assets in Q210, a $2.4bn or 96% increase from the $2.5bn reported in the same quarter last year. JPMorgan Chase reported $9.34bn in nonperforming mortgage assets in Q210, adding $1.6bn or 20% from one year ago. Citigroup reported $1.4bn in North American REO, an increase of $600m or 75% from the same quarter last year. A spokesperson for Citigroup said the increase did not come from more residential REO taken back by CitiMortgage, the servicing arm of Citigroup, and could be commercial property. Daren Blomquist, the managing editor of the monthly RealtyTrac foreclosure reports said there was an increase of 73,000 residential REOs from Q209 to Q210. From two years ago, the “big four” reported large increases in these assets, while others even showed decreases. In Q208, Bank of America reported $9.7bn in nonperforming loans, leases and foreclosed properties, meaning the amount they’ve reported has more than tripled in two years. Wells Fargo has seen a decrease since Q208. In that quarter, the bank reported $5.2bn in foreclosed assets. According to that financial supplement, $619m in loans were foreclosed or REO assets. JPMorgan Chase reported $3.2bn in nonperforming mortgage assets in Q208. It has nearly tripled from two years ago as well. Citigroup has reported a flattened inventory of REO since Q208. For that quarter two years ago, the bank reported $1.6bn in REO, only $200m or 12% more than Q210. Write to Jon Prior. Disclosure: the author holds no relevant investments.
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