As it receded, the refi wave soaked up over one-third of First Horizon National Corp.'s annual fundings.
Full-year 2004 volume of $30.5 billion fell way below the previous year's level of $47.1 billion, according to the mortgage lender's FORM 8-K/A filing.
The "2004 results reflect the impact of the unfavorable interest rate environment that we saw for much of the second half of the year," said company chief executive Ken Glass in an announcement.
The refi share of 2004s production declined to 45 percent of total originations from 72 percent the year before, the lender said, adding that "the large reduction in refinancings was partially offset by improved home purchase originations," which increased 26 percent as the housing market continued to improve.
However, fourth quarter production of $7.8 billion was reportedly 15% better than the previous quarter, First Horizon said.
Half of the fourth quarter fundings were reportedly from adjustable-rate mortgage transactions, excluding government ARMs.
The warehouse/pipeline balance as of the end of the quarter totaled $6.7 billion, the Memphis, Tenn.-based company said.
The size of the servicing portfolio was reported at $86.6 billion as of the year's end, up 22% from 2003.