Bank Originations Rose in 1Q

Despite a weak housing market and tight credit conditions, one- to four-family loan originations by banks rose 14% in the first quarter, while federally chartered thrifts reported a decline in loan production. Single-family loan originations by commercial banks and savings banks totaled $288.6 billion in the first quarter, up 14% from the level of the previous quarter, according to the Federal Deposit Insurance Corp. Loan production matched the $286.4 billion in originations during the same period in 2007. In the first quarter, 673 commercial banks and savings banks reported origination data to the FDIC. Meanwhile, 831 federally chartered thrifts originated $115.2 billion in one- to four-family mortgages in the first quarter, down 20% from the level of fourth quarter and down 23% from that of the first quarter of 2007. The Office of Thrift Supervision reported that refinancings constituted 50% of thrift originations and adjustable-rate mortgages made up only 10% of loan volume.