Quarterly volume edged down for MortgageIT Holdings Inc.
Third quarter mortgage fundings of $7.5 billion were off $0.1 billion from the previous three-month period, the real estate investment trust announced on Tuesday. In the third quarter 2005, production was $9.2 billion.
The annual decline in total originations primarily resulted from exiting the wholesale subprime mortgage market in the first quarter, MortgageIT said, adding that in the last quarter it also began to wind down its correspondent lending channel, a process expected to be complete by yearend.
Refinance loans reportedly represented 52 percent of the third quarter's fundings -- slightly higher than the 46 percent reported by the Mortgage Bankers Association today.
The New York-based lender said its prime wholesale business funded $6.35 billion of the quarterly originations.
The self-originated portfolio totaled approximately $4.6 billion as of Sept. 30, the REIT added.
Third quarter net income was $1.4 million and included a $2.1 million expense related to the proposed merger with Deutsche Bank, according to the announcement. The acquisition of MortgageIT is expected to close during the first quarter 2007.