Residential Fundings Fell 45% in 4Q, Worst Since 2000

Mortgage bankers funded a meager $273 billion in the fourth quarter — a 45% decline from the same period last year — as the national recession deepened and lenders continued to exit certain loan channels, according to new figures compiled by National Mortgage News and the Quarterly Data Report. For the full year, residential loan production cratered: $1.61 trillion compared to $2.65 trillion in 2007, a 39% plunge in activity. The fourth quarter was the industry's worst showing since the first quarter of 2000 when just $209 billion in loans was originated by non-depositories, banks, thrifts and credit unions. Based on the current "run-rate" industry production could total just $1.092 trillion this year. (For the full story with individual company rankings see the Monday, March 9 edition of National Mortgage News.)