Banks Get 2/3 of SF Originations via Wholesale

Commercial banks and savings banks get two thirds of the single-family loan originations through their wholesale channels and only one-third through their retail branches and offices, according to new data from the Federal Deposit Insurance Corp.The Call Report data show that 575 banks originated $330.1 billion in first mortgages and $9.8 billion in closed-end second mortgages during the third quarter. It is the first time the FDIC has collected origination data, and it only requires banks with at least $1 billion in assets, or smaller banks with at least $10 million in originations over the past the two quarters, to report. The Office of Thrift Supervision requires all thrifts to report their origination activities. A breakdown shows that the reporting banks originated $226.3 billion in first-mortgage loans through their wholesale channels and $103.8 billion through their retail channels. Wholesale includes purchasing and funding loans through correspondent lenders and mortgage brokers.