Commercial and Savings Bank Originations Fare Better

Single-family originations by commercial and savings banks totaled $214.6 billion in the fourth quarter, down only 15% from a year ago and 6% from the previous quarter, according to Federal Deposit Insurance Corp. data. Wholesale loan production has held up surprisingly well - totaling $148 billion in the fourth quarter, down only 8.6% from a year ago and 6.1% from the previous quarter. Thrifts originated $52.3 billion in 1-4 family loans in the fourth quarter, down 21% from the third quarter, according to the Office of Thrift Supervision. Compared to the fourth quarter of 2007, loan production at OTS-regulated thrifts is down 64% - mainly due to the failures of Washington Mutual and IndyMac in the third quarter. Meanwhile, an FDIC report shows the delinquency rate on single-family loans held by banks and thrifts jumped dramatically in the fourth quarter. Loans 90 days or more past due or in nonaccrual status hit 4.89%, up more than 100 basis points from the third quarter.