Single-family retail originations by FDIC-insured institutions totaled $196.6 billion loans in the second quarter, up 2% from the prior quarter, and up 5% from the second quarter of 2012, according to a new Federal Deposit Insurance Corp. report.
The second quarter report shows that the 1,115 reporting banks recorded $8.1 billion in income from the sale, securitization and servicing of their 1-4 family loans, up from $7.9 billion in the first quarter.
The banks have enjoyed a great run over the past four quarters as
FDIC requires insured depositories that originate more than $10 million in residential loans a quarter to report mortgage origination data, as well as all institutions with $1 billion or more in assets.
These reporting banks and thrifts sold $481.5 billion in 1-4s during the second quarter including loans they aggregate through their wholesale and correspondent channels. Loan sales in 1Q13 totaled $482.5 billion.
Meanwhile, loan repurchases and indemnifications fell to a four-year low. The FDIC reported that loan buybacks fell to $2.5 billion in 2Q13 after spiking to $6.1 billion in the prior quarter—mainly due to a huge repurchase settlement between
The $2.5 billion in repurchases is the lowest reported by FDIC since the second quarter of 2009. But historically, buybacks are still at a high level.
