Nearly all originators saw in improvement in business from the first quarter. While most have seen home loan fundings decline, however, from a year ago -- a few pushed activity higher. By switching from retail to wholesale originations, one lender saw annual originations soar 600 percent.
U.S. Bancorp reported in its second-quarter 2010 earnings that mortgage production rose to $10.6 billion from the first quarter's $9.0 billion. But business backed off $16.3 billion in the second-quarter 2009.
The consumer finance division originated $5 million in subprime mortgages. The weighted-average credit score on the subprime originations was 612, while the weighted-average loan-to-value was 66 percent.
Minneapolis-based U.S. Bancorp reported its third-party servicing portfolio finished June at $163.2 billion, higher than $156.5 billion three months earlier. Residential first-mortgage assets edged up to $21.8 billion from $21.0 billion, and first-lien home-equity loans were unchanged at $5.5 billion. Delinquency of at least 30 days, including nonperforming loans, on residential loans was 5.83 percent, lower than the first quarter's 6.29 percent but worse than 5.76 percent a year ago, U.S. Bancorp said.
Second-lien assets were unmoved at $19.3 billion. The 30-day delinquency rate on HELs was just 1.73 percent, up from 1.71 percent at the end of March and down from 1.78 percent a year prior.
Commercial mortgage holdings at U.S. Bancorp fell to $33.9 billion from $34.2 billion. Commercial mortgage delinquency of at least 30 days fell to 5.82 percent from 6.81 percent three months earlier and 6.55 percent a year earlier.
Second-quarter home-loan originations at Regions Financial Corp. were $1.8 billion, improving from the prior period's $1.4 billion. The Birmingham, Ala.-based bank cited purchase activity for the improvement. Second-quarter 2009 production was much higher at $3.1 billion.
Residential first mortgages on Regions' balance sheet were mostly unchanged from the first quarter at $15.6 billion, while home-equity holdings fell to $14.8 billion from $15.1 billion. Commercial real estate assets declined to $31.4 billion from $33.0 billion on March 31.
Headcount at Regions was 27,895 at the end of the second quarter, fewer people than 28,213 at the end of March.
Second-quarter production at Fairway Independent Mortgage Corp. was around $0.67 billion, easing from around $0.70 billion in the first quarter. Volume was $3.35 billion during all of last year. Through July 31, year-to-date production at Fairway Independent Mortgage Corp. was $1.85 billion.
During its fiscal fourth quarter ended June 30, First Place Financial Corp.'s originations were $0.576 billion, improving from the prior quarter's $0.326 billion and also better than $0.429 billion a year earlier.
Milford, Conn.-based Total Mortgage Services LLC recently projected more than $1 billion in 2010 originations. Last year, volume was around $700 million. The 13-year-old firm says it is licensed in 21 states and plans to be originating in 45 states by the end of next year.
Originations at 360 Mortgage Group were $0.7 billion during 2009, Del Mar DataTrac reported in a case study. Last year's business was a 600 percent increase from 2008. Growth at the Austin, Texas-based lender has occurred with just a "three-person back office staff" as it shifted from a direct-to-consumer model to a wholesale lender in "response to evolving industry and regional conditions."
Umpqua Holdings Corp. reported in its second-quarter earnings report that closed-loan volume increased to $0.145 billion from $0.127 billion three months earlier but was less than the $0.234 billion funded one year earlier.
Over in Orlando, Fla., FBC Mortgage reported that the 368 loans it closed in June for $54 million represented the "best closing month in company history." The 130-employee company claims a 35 percent market share in the Central Florida market. FBC President Rob Nunziata credited low rates, an expiring tax credit and affordable home prices for the boost.
FBC's Florida Mortgage Report said the region's second-quarter volume was $120 million, "tripling 2008 levels and doubling 2009 levels."
During all of last year, mortgage bankers closed $82.3 billion in commercial mortgages, the Mortgage Bankers Association reported, sinking from around $181.4 billion previously reported for 2008. Commercial financial institutions accounted for 24 percent of 2009 production, while multifamily transactions represented 44 percent.
At StanCorp Financial Group Inc., second-quarter commercial mortgage production was $0.201 billion, better than the prior quarter's $0.141 billion. Business at the Portland, Ore.-based firm was down, however, from $0.283 billion in the same period last year.