“We are making adjustments to reduce expenses in response to lower origination volumes, and we expect these adjustments will continue over the next couple of quarters.”

In context

“Additional changes will be rolled out in the second half of this year, which will further reduce deposit-related fees. Home lending revenue declined 53% from a year ago and 35% from the first quarter driven by lower mortgage originations and compressed margins, given the higher rate environment and continued competitive pricing in response to excess capacity in the industry. After increasing over 150 basis points in the first quarter, mortgage rates increased over 100 basis points in the second quarter. The impact of higher rates also reduced revenue from the resecuritization of loans purchased from securitization pools. The mortgage market is expected to remain challenging in the near term, and it's possible that we have a further decline in mortgage banking revenue in the third quarter. We are making adjustments to reduce expenses in response to lower origination volumes, and we expect these adjustments will continue over the next couple of quarters. Credit card revenue was up 7%, auto revenue increased 5% and personal lending was up 7% from a year ago, primarily due to higher loan balances. Turning to some key business drivers on slide 11. Our mortgage originations declined 10% for the first quarter, with growth in correspondent partially offsetting the decline in retail originations. Refinances as a percentage of total originations declined to 28%. Average home lending loan balances grew 2% for the first quarter, driven by the fourth consecutive quarter of growth in our nonconforming portfolio, which more than offset declines in loans purchased from securitization pools or EPBOs. Turning to auto. Origination volume declined 35% from a year ago and 26% from the first quarter due to increased pricing competition, credit tightening act”