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| The nation’s thrift industry posted higher quarterly loan volume. But delinquency worsened.
Second quarter residential originations were $173.3 billion at thrifts, the Office of Thrift Supervision reported Tuesday. Volume climbed from $149.6 billion during the first quarter and $148.5 billion a year earlier. Nearly half of the latest quarter’s activity was for refinances. Commercial mortgage production was $21.3 billion, up from $19.6 billion in the first quarter but down from $22.6 billion during the second quarter 2006, OTS said. Thrifts were responsible for nearly one-in-four residential loans originated during the latest period, OTS said. A year earlier, thrift market share was just 20 percent. Delinquency of between 30 and 89 days past due on all loan types was 0.91 percent on June 30, up from 0.78 percent as of March 31, the agency said. Residential delinquency of at least 90 days, including loans in nonacrrual status and repossessed assets, was1.16 percent as of June 30, climbing 24 basis point from the first quarter. Residential assets accounted for $0.765 trillion, or 51 percent, of $1.504 trillion in thrifts’ total assets at the end of the second quarter, according to the data. Out of 836 thrifts under supervision, OTS noted 10 were considered “problem thrifts,” though 99 percent were more than “well-capitalized.” Net income for the sector was $3.84 billion in the second quarter, up 6 percent form the first quarter but down 9 percent from a year prior, the agency indicated. “The nation’s thrift industry posted solid earnings and profitability in the second quarter of 2007 despite the effects of a slowing housing market and flat-to-inverted yield curve,” the statement said. “The industry is financially strong.” |
