First Quarter Residential Originations Best Since 4Q 2010


Residential lenders funded $462 billion of home mortgages in the first quarter, the industry’s best showing since the fourth quarter of 2010, according to preliminary figures compiled by National Mortgage News.

The volume number is based on secondary market loan purchases reported by Fannie Mae, Freddie Mac and GNMA securitization numbers. (NMN is still compiling 1Q funding figures for the industry and will report its final results at the end of May.)

In 2011 the industry, as a whole, funded $1.45 trillion of home loans compared to $1.67 trillion in 2010.

In the first through fourth quarters of last year mortgage bankers originated $353 billion, $291 billion, $356 billion and $450 billion, respectively, according to NMN and its Quarterly Data Report affiliate.

Based on the current run-rate, the industry could wind up funding $1.8 trillion this year, but most mortgage and housing economists expect production to trail off through yearend, though forecasts could change, especially now with the yield on the benchmark 10-year Treasury bond below 1.8%.

Meanwhile, commercial/multifamily originations are on the rise as well, according to figures released by the Mortgage Bankers Association. The MBA said commercial production rose 36% in 1Q compared to the same period in 2011. However, compared to the fourth quarter commercial production fell 12%.

The MBA offers no solid dollar numbers and instead bases its findings on an index.

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