Thrifts Claim Higher Share
Despite a 13% drop in single-family originations, thrift institutions enjoyed near-record profits in the first quarter and their share of the mortgage market increased to 26%, up two percentage points from the fourth quarter.
The Office of Thrift Supervision reported that thrifts originated $142.6 billion in single-family loans in the first quarter, down from $163.9 billion in the fourth quarter and $141.5 billion in the first quarter of 2005.
Adjustable-rate mortgages comprised 44% of thrift originations in the first quarter, compared to 50% in the previous quarter. Refinancings accounted for 35% of originations, up from 34% in the fourth quarter. The report found that growth of home-equity lines of credit in 2004 and early 2005 has come to an end. HELOCs outstanding increased by only $1 billion in the first quarter to $91.6 billion.
OTS said, "Earnings will likely be constrained in future reporting periods by a flat yield curve and declining loan demand." (c) 2006 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com http://www.sourcemedia.com