Preliminary: 4Q Residential Fundings Rose 75%

Mortgage bankers funded roughly $475 billion of one- to four-family loans in the fourth quarter, a 75% spike in originations compared to the same period a year earlier, according to preliminary survey results compiled by National Mortgage News. The period ending December 31 was a decent quarter for most lenders thanks to continued low interest rates and an extension of the federal first-time home buyer tax credit. However, fear of the tax credit ending likely pushed some consumers into buying homes earlier, causing an untold number of closings to occur in the third quarter instead of the fourth. In the third quarter of 2009 mortgage bankers originated $442 billion of loans. It should be pointed out that the fourth quarter of 2008 — the height of the credit crisis — was one of the worst production periods of the decade with just $277 billion in loans closing.