Thrifts' Origination Totals Leveled Off with Refinancings in Quarter

Thrifts originated $47.1 billion in single-family loans during the third quarter, down nearly 25% from the previous quarter as refinancings dropped off. Refinancing activity accounted for 39% of thrift originations, compared to 55% in the second quarter when refis were near record levels, according to the Office of Thrift Supervision. The 780 OTS-supervised thrifts hold $348.9 billion in one-to-four family loans on their books and 5.76% are classified as "noncurrent" (90 days or more past due or considered uncollectible), up from 3.39% a year ago. The noncurrent rate on construction loans is 13.1% and 2.7% on commercial real estate loans. Thrifts posted a profit of $1.3 billion for the third quarter, up from $94 million in the previous quarter. But $1.1 billion of that profit came from a sale or non-operating gain from one institution. "Without that gain, the industry's net income would have been $200 million, essentially breaking even," OTS said.