EDISON, N.J. - Chase Home Finance, the mortgage unit of Chase Manhattan Corp., earned $74 million in the second quarter, the same as a year earlier.
Revenues from mortgage originations and sales fell 53%, to $41 million, because of rising interest rates. But higher rates also discouraged homeowners from paying their loans off early, which helped Chase's huge servicing business. Mortgage servicing fees jumped 70%, to $131 million. Total revenues grew 8%, to $318 million.
In the first half the Chase unit earned $143 million, up 2% from the same period last year. Revenues grew 12%, to $642 million - those from originations and loan sales fell 53%, to $85 million, but servicing fees grew 98%, to $281 million.
Despite rising interest rates, the Chase unit has been able to keep its earnings steady because "we have a balanced platform," said Luke S. Hayden, executive vice president.