(Note: this item corrects an item that ran on June 20 using faulty data.)
Two of the nation's top megabanks–Bank of America, and JPMorgan Chase–saw their residential second lien production volumes swoon in the first quarter on a year-to-year basis but the leader in this market, Wells Fargo & Co., saw its volume increase somewhat, according to new figures compiled by National Mortgage News and the Quarterly Data Report.
Wells funded approximately $1.65 billion of seconds in 1Q, an 8% increase from the same quarter a year ago. But B of A and JPM saw volume declines of 8%, and 27%, respectively. B of A, the second largest second-lien lender, funded $812 million during the quarter while Chase, the fourth-largest second-lien lender, funded just $249 million. (PHH Mortgage, which funded $326 million and saw a 2% decline, was the third largest second-lien funder.)
In addition to Chase, three other home equity lenders among the top 10 experienced double-digit percentage declines in production while two, U.S. Bank Home Mortgage and People's United Bank, saw double-digit percentage increases and one, Navy FCU, saw a triple-digit percentage increase.
One lender in the top 10 in the June 20 list should not have been there at all. Doral Financial, San Juan, PR, said its second lien volume for the first quarter of 2011 was zero, for the first quarter of 2010 $3 million, and that it has never done $97 million of second liens in a quarter as was stated or implied. NMN regrets the errors.
Some banks have been starting to advertise home equity lines of credit again but many of those left in the sector have tightened underwriting standards, citing challenges related to declining home values and a weak outlook for housing.
