Single-family originations by roughly 1,000 FDIC-insured institutions rose 9% in the second quarter but earnings from their mortgage banking activities slipped a bit from the prior period.
Repurchase and indemnification demands from investors—including Fannie Mae and Freddie Mac—cost the reporting banks and thrifts $3.5 billion during the quarter. In the first quarter,
The
The depositories also facilitated $285 billion of closed-end single-family loans through their third-party production channels. In the first quarter banks facilitated $294 billion.
FDIC figures show that banks sell most of the home mortgages they fund/purchase into the secondary market—to Fannie, Freddie or into GNMA bonds.
Earnings from the sale, securitization and servicing of mortgages slipped 1% from the first quarter to $7.7 billion in 2Q.
There are currently 7,307 FDIC-insured institutions. But just 1,039 commercial banks and savings institutions reported their origination data to the FDIC in the second quarter.
The nation’s top 100 residential funders control roughly 90% of the production market, according to National Mortgage News and the
The FDIC only requires insured depositories that originate more than $10 million of residential loans in a given quarter or have $1 billion or more in assets to report mortgage origination figures to the agency.
Overall, it was a profitable quarter for banks. The industry, as a whole, earned $34.5 billion, a 20% gain from a year ago.
