Federally chartered thrifts originated $36 billion of single-family loans in the third quarter, down 8% from the previous quarter, according to the Office of Thrift Supervision.
Refinancings accounted for 57% of originations, compared to 42% in the second quarter, as mortgage rates hit historic lows.
The thrift regulator reported that the serious delinquency rate on single family mortgages increased nearly 30 basis points from the second quarter to 5.75% at September 30.
Moreover, the nation's 741 thrifts, which hold $928 billion in assets, added $2.12 billion to their loan loss reserves during 3Q.
Despite the high level of problem loans, the thrift industry posted a $1.77 billion profit in 3Q, a 43% jump from a year ago.
"The industry's profitability was encouraging, but other indicators reminded us that economic stresses – particularly from unemployment – continued to take a toll," said OTS acting director John Bowman.
OTS closed nine thrifts during the third quarter and handed the failed institutions over to the Federal Deposit Insurance Corp.
