Freedom Mortgage Corp. claims it has been ranked among the nation’s biggest originators of loans that are guaranteed by the Department of Veterans Affairs. But an excessively high refinance share at the company threatens to hurt its overall business.
The Mount Laurel, N.J.-based company reported to Mortgage Daily that it originated $5.631 billion in residential loans during the first quarter. Second-quarter data was not yet available.
Freedom’s mortgage production surged from $4.852 billion in the fourth quarter of last year.
During the first-quarter 2012, volume worked out to $2.408 billion.
This year’s activity included $2.231 billion in retail business, $2.780 billion in loans originated through the wholesale channel and $0.621 billion in correspondent volume.
Refinances accounted for an incredibly high 91 percent of first-quarter originations — leaving the lender vulnerable to increases in interest rates.
Conventional conforming originations totaled $0.830 billion, while conforming jumbo production was $0.321 billion, Federal Housing Administration-insured fundings were $2.527 billion, and VA-guaranteed loan volume was $1.954 billion.
Freedom Mortgage reported this week that it was ranked by VA as the third-biggest VA lender based on $5.6 billion in VA originations between October 2012 and June 2013.
Freedom Mortgage claims it was the No. 3 issuer for Ginnie Mae during the first quarter.
As of June 30, there were 1,986 people employed by Freedom Mortgage, up from 1,800 at the end of last year and 981 at the end of 2011.
