Thrift SF Originations Fell in 3Q

Despite strong demand for adjustable-rate mortgages, single-family originations by thrift institutions fell 16% in the third quarter, from $173.5 billion in the second quarter to $145.5 billion.The Office of Thrift Supervision reported that ARMs made up 56% of thrift originations in the third quarter, up from 50% in the second quarter. Refinancings dropped from 37% of production in the second quarter to 31% in the third quarter. While ARMs production is high, thrifts continue to be sellers. Thrifts sold $122.7 billion of one- to four-family loans during the third quarter, down only 13% from sales in the second quarter. Thrifts posted $3.5 billion in earnings in the third quarter, the second-highest level on record, and total assets rose slightly, to $1.23 trillion. However, the number of thrift institutions dipped below 900 in the third quarter, to 896.