Subprime Lenders Break Volume Record

Subprime funders originated a record $241 billion of home mortgages in 2002, according to figures compiled by National Mortgage News and its affiliate, the Quarterly Data Report.The stunning production results came amid historical lows in mortgage rates, but also an increasing consumer and regulatory focus on predatory lending. In 2001 subprime funders originated $180 billion in mortgages, or 8.97% of all loans funded in the year. In 2002 the subprime market share actually fell to 8.39% of all loans produced, even though the overall dollar amount of fundings increased.The top subprime funder in the fourth quarter was CitiFinancial, Baltimore, with $5.97 billion, an increase of 47% from the same quarter last year. After Citi, the top five producers were: Household International ($5.4 billion/up 13%); Washington Mutual ($4.98 billion/up 90%); New Century Financial ($4.5 billion/up 125%); and Ameriquest Mortgage ($4.4 billion/up 115%). (See NMN issue of March 3 for full details.)