Helped by the Home Affordable Refinance Program, several mortgage bankers became billion-dollar players in the third quarter. Plenty of mid-tier lenders continue to originate business from mortgage brokers.
The Department of Veterans Affairs announced Friday that it has guaranteed 20 million home loans, including 540,000 during 2012, since the program was established in 1944 as part of the original GI Bill of Rights for returning World War II Veterans. There are 1.7 million VA loans outstanding for $284 billion.
"The 20 millionth loan was guaranteed for a home in Woodbridge, Va., purchased by the surviving spouse of an Iraq War Veteran who passed away in 2010," the statement said. "Given the current low interest rates, the program has grown significantly in the past five years, with 71 percent more purchases and 20 times as many refinances processed in fiscal-year 2012 than in FY 2007."
A newsletter from Inside Mortgage Finance indicated that total second-quarter, non-agency, jumbo production was $38 billion, up from the first quarter's $35 billion and rising from just $23 billion in the second-quarter 2011.
Regions Financial Corp. said in its third-quarter earnings report that residential loan production inched up to $2.2 billion from the second quarter's $2.1 billion and $1.5 billion a year earlier. The Birmingham, Ala.-based bank reported in September that its HARP production had reached 6,000 units for more than $1 billion for the year.
With 9,906 loans funded for $2.019 billion, United Shore Financial Services nearly doubled its business from the second quarter, when 6,416 loans for $1.245 billion were closed, and more than tripled third-quarter 2011 production of $0.667 billion. The Birmingham, Mich.-based company's latest volume included $0.243 billion in retail loans and $1.776 billion in wholesale activity.
Third-quarter production at Fremont Bank was 6,886 mortgages for $1.782 billion, climbing from $1.699 billion three months earlier and $1.0 billion a year earlier. In-house retail originations accounted for $1.233 billion of the latest activity, and wholesale clients were responsible for $0.548 billion.
Fairway Independent Mortgage Corp. closed 8,330 loans for $1.689 billion during the third quarter, improving on the second quarter's $1.414 billion and $0.94 billion in the same period last year. The most-recent activity reflected $1.554 billion in retail business, $0.135 billion in wholesale fundings and less than $0.001 billion from the correspondent channel.
Edison, N.J..-based Real Estate Mortgage Network Inc. closed $1.418 billion during the third quarter, including $0.900 billion in retail production and $0.517 billion in wholesale originations. No volume was reported for REMN's correspondent channel, which launched in June.
Third-quarter production at Associated Bank was 6,004 loans for $1.148 billion. Retail originations accounted for $0.801 billion, while wholesale production was $0.043 billion and correspondent acquisitions were $0.304 billion.
During its first full quarter of operation since being acquired by Discover Financial Services from Tree.com in June, Discover Home Loans originated 5,126 loans for $1.071 billion. Under Tree.com, the unit originated just $1 billion a year.
Close behind Discover was Stonegate Mortgage Corp., which reported 5,475 loans closed for $1.051 billion -- soaring from the second quarter's $0.596 billion and $0.323 billion in the same three months last year. Third-quarter 2012 production consisted of $0.146 billion in retail business, $0.255 billion in wholesale fundings and $0.650 billion in correspondent acquisitions.
Business shot up at New American Funding, where 3,492 loans for $1.023 billion were originated in the latest period. The Tustin, Calif.-based firm boosted business from $0.764 billion in the second quarter and $0.487 billion in the third-quarter 2011. The most-recent activity included $0.938 billion in retail production and $0.085 billion in mortgage broker business.
Approximately $1 billion was closed by Arvest Mortgage Co. in the third quarter, up from around $0.5 billion in the second quarter, according to an Oct. 18 announcement. The activity brings year-to-date volume to $2 billion -- more than during any previous full year.
At Colonial Savings, F.A., third-quarter production was 4,971 loans for $0.870 billion. Retail fundings represented $0.400 billion, the wholesale channel accounted for $0.140 billion, and correspondent originations were $0.330 billion.
In the three months ended Sept. 30, Impac Mortgage Holdings Inc. closed 3,013 loans for $0.696 billion, beating the prior quarter's $0.532 billion and the year earlier's $0.257 billion. More than $0.194 billion of third-quarter business came from retail originators, $0.366 billion was originated by mortgage brokers, and correspondent clients accounted for $0.136 billion.
St. Louis-based USA Mortgage originated 2,915 loans for $0.522 billion during the third quarter, growing from 2,225 loans for $0.379 billion in the prior period and $0.3 billion in the same period during the prior year. All of USA's business is retail.
More than 1,373 home loans for $0.440 billion were closed by McLean Mortgage Corp. during the third quarter, growing from second-quarter volume of 979 loans for $0.308 billion and third-quarter 2011 production of 596 loans for $0.199 billion. Refinances accounted for just over half of the retail lender's latest activity. Full-year 2012 originations are expected to reach nearly $1.5 billion.
Churchill Mortgage reported that it funded 1,448 loans for $0.258 billion during the three months ended Sept. 30. Business was barely changed from the second quarter's 1,475 loans for $0.258 billion. In September, the Brentwood, Tenn.-based said it expected to reach $1 billion in annual production for the first time ever this year. Churchill said in August that its FHA refinance business was up 540 percent since the FHA streamline refinance incentive took effect in June 2011.
Prospect Mortgage reported third-quarter HARP production of $201 million.
In Roswell, N.M., data from PSM Holdings Inc. indicated that subsidiary PrimeSource Mortgage Inc. closed 1,030 loans for $0.184 billion during the third quarter, a little better than the 863 loans closed for $151 million in the prior period.
A little more than $0.099 billion in home-loan production was reported by Diamond Residential Mortgage for the third quarter. All of the business was originated through the retail channel.
An Aug. 21 announcement from Gateway Mortgage Group indicated that production during the first seven months of 2012 was up 104 percent from a year earlier. During just July, volume exceeded $0.141 billion. Gateway said in October that its services more than 12,000 loans for more than $1.8 billion.
Over $0.050 billion has been closed through National Family Mortgage's peer-to-peer platform since it opened in late 2010, according to an Aug. 27 news release. Year-to-date 2012 volume was $0.030 billion. The Boston-based company charges a $599 origination fee and $15 a month for servicing.
State Financial Network Inc., a credit union service organization, said in September that credit unions recognized a 29 percent increase in loan volume in during the first half of this year.
Since launching on May 31 until Sept. 27, Bellwether Enterprise Real Estate Capital LLC reports that it funded $0.421 billion in commercial mortgages. Multifamily production was $0.221 billion, retail property originations were $0.114 billion and the rest came from hospitality, healthcare, office and industrial loans.