Lending to investors and second-home buyers rose 10% in 2011 while overall purchase money transactions fell 5%, according to new origination figures culled from
According to Federal Reserve researchers, mortgages granted to non-owner occupants reached a high of 16% during the housing boom, but fell to 11% in 2009 and 2010.
In 2011, lending to non-owner occupants rebounded to a 13% share of the residential purchase market.
Overall, conventional lenders funded 313,100 loans to investors and second-home buyers in 2011. Investors took out just 1,440 mortgages backed by the Federal Housing Administration, Fannie Mae or Freddie Mac.
By comparison, in 2005 lenders originated 1.2 million purchase money loans that were taken out by investors and second-home buyers.
Overall, lenders reported making 7.1 million single-family loans in 2011, down about 10% from 2010. It marks the lowest number of mortgage loans reported under HMDA since 6.2 million were reported in 1995, the Fed notes.
