NEW YORK — While down year-over-year, Chase revealed this week that auto loan originations were up by about 5 percent quarter-over-quarter.

For the third quarter, Chase reported that auto originations came in at $6.1 billion, down 12 percent from the prior year, but up 5 percent from the previous quarter. Auto originations were $5.8 billion in the second quarter and $6.9 billion in the third quarter of last year.

According to officials, the "decrease in year-over-year originations was driven primarily by the CARS program in the prior year."

Auto net income was $197 million, up $84 million year-over-year, which reflects lower charge offs, officials went on to point out.

For the Mortgage Banking & Other Consumer Lending division, which encompasses auto loans, Chase reported net income of $207 million, down $205 million, or 50 percent from the previous year.

Net revenue came in at $1.9 billion, down by $150 million, or 7 percent from 2009, officials said.

Mortgage Banking net revenue was $1.1 billion, down $219 million. Other Consumer Lending net revenue, which includes auto and student lending, was $832 million, up $69 million, largely due to higher auto loan and lease balances, according to the company.

The provision for credit losses, mostly related to the student and auto loan portfolios, came in at $176 million compared with $222 million in the previous year.

Student loan and other net charge-offs were $82 million (a 2.21 percent net charge-off rate), compared with $60 million (or a 1.66 percent net charge-off rate) in 2009.

Auto loan net charge-offs were $67 million, a 0.56 percent net charge-off rate, compared with $159 million, or a 1.46 percent rate, in the prior year, management reported.

Overall, average auto loans were $47.7 billion, up 10 percent.

Meanwhile, Chase revealed that mortgage banking net revenue was $1.1 billion, down $219 million.

Reviewing overall company-wide results, Chase reported third quarter net income of $4.4 billion, up 23 percent from $3.6 billion in the third quarter of 2009.

Earnings per share came in at $1.01, compared with $0.82 in the same period of last year

Jamie Dimon, chairman and chief executive officer, pointed out, "Our third-quarter net income of $4.4 billion was the result of the good underlying performance of our business. The Investment Bank delivered solid earnings while maintaining its number one ranking in Global Investment Banking Fees. Retail Financial Services reported strong mortgage loan production. Card Services increased sales volume by 7 percent compared with the prior year, and positive credit trends assisted in delivering improved results. Commercial Banking reported record revenue, while Asset Management had strong net flows of $38 billion this quarter."

He went on to indicate the company saw an overall decline in credit costs for the quarter, although Dimon did note that the mortgage and credit card portfolios are still show very high net charge-offs.

"Our mortgage delinquency trends have remained relatively flat compared with the prior quarter, and we expect mortgage credit losses to remain at these high levels for the next several quarters. If economic conditions worsen, mortgage credit losses could trend higher. With respect to our credit card portfolio, delinquencies and net charge-offs continued to improve, and we reduced loan loss reserves by $1.5 billion this quarter as estimated losses declined. We expect credit card net charge-offs to continue to improve next quarter," he said.

Dimon went on to point out, "We are firmly committed to doing all we can to support the ongoing economic recovery. We are providing capital, financing and liquidity to our clients in the U.S. and around the word. So far this year, we have loaned or raised capital for our clients of more than $1 trillion, and our small-business originations were up 37 percent. In addition, we are on track to hire over 10,000 people in the U.S. this year."

Discussing financial reform, he indicated, "We will work with our regulators as they proceed with the extensive rulemaking required to implement financial reforms. We will continue to devote substantial resources to ensure regulatory reforms are implemented in a way that preserves the value we deliver to our clients.

Finally, Dimon said, "The firm has excellent client franchises with leading positions in their respective markets, a strong balance sheet and plenty of capital. With these fundamental strengths, we will continue to serve our clients and build our franchises for many years to come while providing good returns for our shareholders."

The company also addressed the questions that have come up about its foreclosure proceedings.

"Issues have been identified relating to mortgage foreclosure affidavits, such as where signors did not personally review the underlying loan files, but instead relied on the word of others (who personally conducted reviews of the underlying loan files). Affidavits were not properly notarized," management said.

Moreover, the management team said affidavits differ by jurisdiction, but generally the types of information include: names of borrowers, property address, date of note, borrower has defaulted and not cured the default and the amount of indebtedness.

"We are currently reviewing about 115,000 loan files that are in the foreclosure process," management indicated. "We will re-file affidavits were appropriate. We have delayed foreclosures sales in these states and will re-initiate when appropriate. New processes are being put in place to ensure we fulfill all procedural requirements on a go-forward basis."

Moreover, officials stressed, "We take these matters very seriously and have dedicated significant resources to these efforts.

"Based on our processes and reviews to date, we believe underlying foreclosure decisions were justified by the facts and circumstances. We are comfortable that our process between initial delinquency and foreclosure is robust and we make every effort to avoid foreclosure," they continued.

And if mistakes are discovered during the reviews, Chase plans to address each individually, with the idea in mind to avoid "further damage to an already weak housing market."