Thrift institutions originated $26.5 billion of single-family loans in the first quarter, down 37% from the prior period, according to figures compiled by the Office of Thrift Supervision.
Despite the decline in fundings, the 724 institutions supervised by OTS reported combined earnings of $1.4 billion, a 13% decline from 4Q.
OTS noted that thrifts sold 99.6% of their first quarter originations into the secondary market, which is not a new trend since such a high percentage of newly funded loans are fixed-rate in nature. (Savings institutions prefer to hold adjustable rate loans, including jumbos, on their balance sheets.)
Thrifts reported servicing fee income of $305.8 million in the first quarter, compared to $380.5 million in the prior period.
Federally chartered institutions held $312.2 billion of 1-4 family mortgages (including $42.6 billion in home equity lines of credit) as of March 31, down slightly from $330.4 billion a year when 758 thrifts were open and operating.
Nearly 6% of first lien mortgages at thrifts are 90 days or more past due, or what the agency considers "non-current." A year ago, the non-current rate was 5.9%. Net charge-offs on the $257.9 billion of first lien 1-4 family loans totaled $479.4 million in the first quarter.
Thrifts also hold $14.8 billion of construction and land loans of which 16.2% are noncurrent. Net charge-offs on these loans totaled $94.3 million in the first quarter.
