Union Bank, San Francisco, one of the largest jumbo lenders in the U.S., is on track to fund a record $9 billion in loans this year, according to a top officer at the company.
“This will be our biggest year ever,” said James H. Francis, executive vice president of Union. Last year the company funded about $7 billion. Roughly 90% of its fundings are jumbos.
In an interview with National Mortgage News, Francis noted that the company is seeing a noticeable pickup in purchase money loans as well.
“Earlier this year about 80% of what we were doing was refis,” said Francis. “Right now, purchase loans are running at 35% of production.”
In the first-half Union noticed that quite a few jumbo purchases involved all-cash deals, but those transactions appear to have run their course, he said.
Roughly 90% of the bank’s fundings entail jumbo loans, which Union keeps in portfolio. Its most popular loans include five-, seven- and ten-year ARMs.
“The seven- and ten-year ARMs are growing the fastest,” he said.
