Mortgage lenders originated $1.04 trillion of 'purchase money' loans in Southern California during the past decade, according to a new research report.
Citing figures from MDA DataQuick, the Pomona, Calif.-based Real Estate Research Council of Southern California reported that Cal mortgage firms, on average, funded $100 billion of home-purchase loans a year since 2000, with lending hitting a peak of nearly $170 billion in 2005.
Purchase money lending in the state has steadily declined since then, falling to $56 billion in 2009. (The figures were first reported by The Orange County Register.) In years past California typically accounted for 15% to 20% of all home loans originated in the U.S.
The RERCSC also found that nearly 57% of purchase money loans since 2000 — $575 billion — were issued at the height of the housing boom from 2003 through 2006.
According to figures compiled by National Mortgage News, subprime lending (nationally) reached a peak of $807 billion in 2005. In 2006 subprime fundings fell to $665 billion.
Over the past two years the subprime market has been nonexistent except for a small 'hard money' business where annual (nationwide) volumes are probably under $500 million.
