Preliminary: 1Q Residential Originations Jump 36%

Thanks to interest rates that were at or near historical lows, residential mortgage lenders saw their loan production jump by 36% in the first quarter, according to preliminary survey figures compiled by National Mortgage News and the Quarterly Data Report.If the final results match the early results, it means the industry could wind up producing $714 billion in home mortgages in 1Q. In the year-ago quarter mortgage bankers funded $525 billion. If that run-rate holds mortgage bankers could fund close to $2.8 trillion this year. Moreover, according to interviews with some top ranked lending shops a large percentage of new loan applications are for refinancings — not new home purchases. A spokesman for Chase of Iselin, N.J., said 80% of its originations in 1Q were refinancings. Chase is a subsidiary of JPMorgan Chase.