Bank of America Corp.’s mortgage business contracted as repurchases and mortgage-servicing rights valuations drove mortgage earnings into the red.

In its third-quarter earnings report, the Charlotte, North Carolina-based financial institution disclosed income at the parent company before income taxes of $7.9 billion.

Although BofA’s earnings weren’t quite as good as $8.4 billion in the prior three-month period, results improved from the $7.3 billion earned one year prior.

Source: Mortgage Daily