Bank SF Originations Fell in 1Q

Single-family mortgage originations by banks fell 20% to $286.3 billion in the first quarter, according to the Federal Deposit Insurance Corp.The FDIC reported that the 673 commercial banks and savings banks saw wholesale originations of first liens drop 21.6% in the first quarter to $184.3 billion and retail originations fall 16.6% to $92.1 billion. The FDIC first-quarter report also shows that banks and thrifts accelerated their whole-loan sales and mortgage securitization activities over the past four quarters by 175%. In the first quarter, FDIC-insured institutions sold and securitized $1.1 trillion in one- to four-family mortgages. The FDIC reported for the first time that 120 banks and thrifts hold 206.9 billion in negative-amortization loans on their books. These interest-only and payment-option mortgages constituted 9.5% of all mortgage loans held by banks and thrifts in the first quarter.