ABA: Bankers Seeing Mortgage Opportunities

Community bankers are seeing opportunities in the residential mortgage market to increase their market share and maintain a strong origination business, according to a survey by the American Bankers Association. Nearly 40% of 248 respondent banks say they expect their mortgage production to increase this year, and 39% expect it to remain at 2007 levels. "This forecast is consistent with the often-expressed view that community banks are well positioned to gain market share as other lenders falter," ABA executive vice president Robert Davis said. Mr. Davis told reporters that many mortgage brokers and mortgage banks have gone out of business, which reduces competition and creates more opportunities for community banks that specialize in prime loans.