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| The biggest recipients of the Troubled Asset Recovery Program increased quarterly residential originations by $134 million. Even monthly originations jumped. But the news wasn’t so good from commercial mortgage production or for purchases of mortgage-backed securities.The top 21 recipients of Treasury investments under the Capital Purchase Program reported $311.5 billion in mortgage originations during the first quarter, according to data published Friday by the U.S. Treasury. Fundings soared from $177.9 billion in the fourth quarter.
Volume included $298.1 billion in first-mortgage production and $13.2 billion in home-equity line-of-credit activity. Just 18 of the 21 biggest TARP recipients originated residential loans during the quarter. Well Fargo & Co. was the biggest lender, with $101.0 billion in total first-quarter fundings. Business included $99.0 billion in first mortgages and $1.9 billion in HELOCs. Total volume at No. 2 Bank of America Corp. was $89.3 billion, followed by $39.1 billion at JPMorgan Chase & Co. and $23.8 billion at Citigroup Inc. No. 5 U.S. Bancorp reported $15.3 billion. During just March, the group originated a total of $122.1 billion, rising from $105.9 billion in February. First-mortgage production for the group was $117.4 billion, rising from $101.9 billion. “First mortgage originations rose from February to March, as low interest rates sustained growth in mortgage refinancing and new home purchases,” the report explained. HELOC volume was $4.7 billion, jumping from February’s $4.0 billion. HELOC business improved even as reverse mortgage activity has depleted HELOC demand. “Home-equity lines-of-credit increased in volume, due in part, to seasonal factors as most borrowers seek bank credit in the spring and summer to remodel homes or for other home-related projects,” the report said. “The increase was also partially driven by low interest rates.” March’s total ranking was the same as the first quarter, with the leader Wells closing $40.9 billion, followed by BoA’s $35.0 billion and JPMorgan’s $16.0 billion. “Of the eighteen banks that are active in the residential mortgage business, total originations increased at 12 banks and decreased at 6 banks,” the Treasury reported. Total Residential Volume
(1st mortgages + HELOC in billions)
The report indicated that first-quarter commercial mortgage volume was $54.9 billion, down from the fourth quarter’s $65.8 billion. Commercial real estate renewals accounted for $36.8 billion of first-quarter activity, and new commitments represented $18.1 billion. March commercial mortgage volume was $20.9 billion, jumping from February’s $16.8 billion. Renewals made up $14.4 billion of March’s volume, and new commitments were $6.5 billion “In commercial real estate, new loan demand remains low due to the lack of new construction activity,” the report said. Net purchases of mortgage-backed securities during the first quarter was a negative $119.5 billion, compared to a positive $254.2 billion in the fourth quarter. March MBS net purchases were ($25.9 billion), worse the February’s ($19.6 billion). |
