Despite Soft Housing, 2Q Originations Strong

Mortgage bankers funded $865 billion in loans during the second quarter, a strong showing amid a rapidly deteriorating housing market.According to exclusive survey figures compiled by National Mortgage News and the Quarterly Data Report, residential fundings rose 4% in the second quarter compared with those of the same period last year. NMN/QDR found that refinancings accounted for 45% of production. (Compared with those of the first quarter, originations rose 14%.) Based on first-half volume, it would appear that lenders could have a year similar to 2005 when they funded $3.3 trillion, their second-best year ever. However, few in the industry think loan volumes will hold, and some companies experienced a severe decline in production during the quarter. Firms suffering the most among the top 30 include: ABN Amro Mortgage, Ann Arbor, Mich., which experienced a 36% drop in fundings, to $9.8 billion, and National City Mortgage, Miamisburg, Ohio, down a hefty 77%, to $3.5 billion. (For the full story and rankings, see the Aug. 28 issue of NMN.)