Single-family originations by commercial banks and savings institutions jumped almost 17% in the third quarter from the prior period, but compared to a year ago production is down 23%, according to new figures released by the FDIC.
The 809 reporting institutions originated $123.3 billion of first lien one- four-family loans in 3Q, compared to $105.8 billion in the second quarter.
Federal Deposit Insurance Corp. officials attributed the increase to higher refinancing activity.
The FDIC collects funding information from commercial and savings banks that originate more than $10 million of residential loans in a given quarter or have $1 billion or more in assets. (The FDIC figures exclude originations by federally chartered thrifts.)
The 3Q FDIC figures also point to the highest level of mortgage buyback demands in over a year. In the third quarter, mortgage repurchases and indemnifications totaled $4.4 billion for the 809 institutions.
These buyback demands cost Bank of America $1.1 billion, Wells Fargo Bank $606 million, Citibank $447 million, JPMorgan Chase Bank $346 million and PNC Bank $258 million.
A separate report on the performance of all 7,400 FDIC-insured institutions shows that depositories increased their holdings of single family whole loans and MBS.
The banks held $1.85 trillion in whole loans at the end of the third quarter, an increase of $23.7 billion from the prior quarter. The banks also added $62.4 billion in MBS to their balance sheets in the third quarter. As of September 30, they held $1.6 trillion of MBS, up 11% from a year ago.
