Fannie Sees Record $1.2T in Originations

Fannie Mae is predicting that residential mortgage originations will top $1.2 trillion this year, which would be a record.In a revised forecast, David Berson, Fannie Mae's chief economist, said a combination of record home sales and strong refinancings are the driving engines in this heated market. "The current projection of $1.2 trillion is about a 15% increase from the previous record high of $1.019 trillion (in loan originations), which occurred in 1993," Mr. Berson told reporters. Fannie Mae said it purchased a record $35.1 billion in mortgages during the month of April and $29.2 billion in May, also a record. For the first five months of 1998, the secondary marketing giant bought $131.8 billion in single-family product, compared with $57.2 billion during the same period in 1997. Meanwhile, adjustable-rate mortgage originations likely will total just 14%, a new historic low.