Residential Lenders Funded $2.78 Trillion in 2002 Industry Comes Close to Funding $1 Trillion in 4Q Alone
Residential lenders funded $2.78 trillion in home loans in 2002, the U. S. mortgage banking industry record.
(PRWEB) March 2, 2003
WASHINGTON, D. C. – February 28, 2003 – Residential lenders funded $2.78 trillion in home loans in 2002, the U. S. mortgage banking industry record, according to National Mortgage News (NMN), the only publication serving the entire mortgage industry.
Year 2002 surpassed previous records in almost all aspects. In the fourth quarter of 2002, the nationÂ’s top 100 lenders funded $838.4 billion in residential loans and refinancings accounted for almost 76% of all funded loans. The previous refinancing record was 64.8%, reached in the first quarter of 2002.
Using three different loan channels – retail, wholesale and correspondent – the top 100 generally fund 80% to 85% of all home mortgages in the U. S. By applying a “blow-up” factor of 1.15% to the top 100, NMN calculated that the industry funded $964 billion in mortgages in the fourth quarter. A blow-up factor of 1.2%, which assumes the top 100 fund 80% of all loans, would result in a fourth quarter production tally of $1.006 trillion. NMN and QDR used a smaller blow-up factor than normal, which assumes that the top 100, thanks to the refinancing boom, captured more market share than normal. All fourth quarter results appear in NMN’s quarterly research publication, the Quarterly Data Report – (QDR).
From the first to the fourth quarter the industry funded $572 billion, $522 billion, $729 billion, and $964 billion, respectively. The results are based on quarterly survey figures collected by NMN. Most of the top 100 funders participate in the survey.
During the first quarter of 2003, many lenders have reported strong production volumes, indicating a positive trend. Housing and mortgage economists anticipate that residential fundings could total $2 trillion this year provided that interest rates do not increase unexpectedly. Many lenders continue to offer 30-year fixed rate (conventional) loans at 5.75% with no points. These are the lowest rates consumers have seen since the 1960s.
National Mortgage News is the only publication serving the entire mortgage industry, including mortgage bankers, commercial bankers, savings institutions, credit unions, insurance companies, government sponsored enterprises and others. Winner of the coveted Polk Award for outstanding financial journalism, National Mortgage News is the first choice among the key players shaping the industryÂ’s future and controlling its vast buying power. Each weekly issue offers progressive coverage of events, trends and major industry players. For more information, log on to www. nationalmortgagenews. com.
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