The results are in, and the second quarter was a solid period for residential lenders — with many reporting double-digit quarterly increases.
The 29,180 loans for $6.7 billion closed by Guild Mortgage during the first-half 2015 was a record, a July 27 statement said.
The San Diego-based lender, which does business from 224 locations in 25 states, noted that first-half volume more than doubled from the same period last year.
Refinance share was a third during the latest period.
“We have seen strong growth in our existing branches and also gains in market share in California and the Northwest from two key acquisitions in late 2014,” Guild Mortgage President and Chief Executive Officer Mary Ann McGarry said in the announcement.
McGarry projects $12 billion in full-year mortgage production. She anticipates the servicing portfolio will grow from
$18.9 billion as of June 30 to $20.8 billion by the end of the year.
Residential loan originations during the second quarter at Citizens Bank totaled $1.523 billion, climbing from $1.211 billion three months earlier and $0.904 billion one year earlier.
Business at the Providence, Rhode Island-based firm is likely to hold up based on the origination pipeline, which rose to $1.9 billion from $1.7 billion in the first quarter.
As part of the Mortgage Daily Second Quarter 2015 Mortgage Origination Survey, Northwest Federal Credit Union reported that it cosed 392 home loans for $0.107 billion during the three months ended June 30.
The Herndon, Virginia-based financial institution said its mortgage staff was 22 employees as of mid-2015.
During the 12 months ended March 31, credit unions located in Michigan increased the total amount of outstanding first mortgages
by 8.8 percent, the the Michigan Credit Union League reported.
Among all of the nation’s credit unions, the appetite for home loans is greater than at banks, TransUnion reported earlier this month. Credit union share of mortgage originations has expanded from seven percent in the first-quarter 2013 to 11 percent in the first quarter of this year.
“While TransUnion data show that credit union mortgage originations decreased 24 percent between 2012 and 2014, originations have actually increased 35 percent in the past year (Q1 2014 to Q1 2015),” the report said. “The rest of the market experienced a 48 percent drop between 2012 and 2014 and only experienced 15 percent growth in the past year (Q1 2014 to Q1 2015).”
TransUnion additionally noted that non-prime mortgage originations were up 25 percent in the first quarter versus four percent for the rest of the industry.
RealtyTrac issued a report last month indicating that U.S. home lenders originated 1,950,267 loans for $540 billion during the second quarter. Based on dollar volume, production increased 14 percent from the prior three-month period and was 29 percent better than the year-earlier quarter.
Conventional and jumbo mortgages accounted for 61.7 percent of second-quarter 2015 originations, while
loan insured by the Federal housing Administration represented for 16.7 percent, and mortgages guaranteed by the Department of Veterans Affairs made up another 6.1 percent, RealtyTrac said. An additional 14.4 percent of originations were home-equity lines of credit.
Refinance share was 56.7 percent in the second-quarter 2015.
“The rise in loan originations particularly the sharp rise in FHA purchase originations indicates the FHA premium reduction at the end of January really is having a big impact, pushing people off the fence to purchase,” RealtyTrac Vice President Daren Blomquist said in the report. “The average loan amount for FHA purchase loans increased from $187,718 in the first quarter of 2011 to $197,315 in the second quarter of 2015 (a 16-quarter high), as the lower FHA premium gave those buyers more buying power.”
Commercial Real Estate Lending
In the commercial mortgage sector,
Capital One announced 17 manufactured housing loans closed for $0.152 billion during the 45 days ended July 30.
Eastern Union Funding reported that it is on track this year to close more than $3 billion in commercial real estate loans. During just July, volume was $0.250 billion.
