Residential mortgage production increased a whopping 68 percent during the first quarter of 2009, compared to a quarter earlier, NationalMortgageNews.com reported.
Banks and mortgage lenders funded $466 billion during the productive quarter, with San Francisco-based Wells Fargo once again leading the way.
Wells saw production rise 50 percent from a year ago, while Bank of America, which was the second largest loan originator, saw numbers up 133 compared to the first quarter of 2008.
Interestingly, NMN speculated that those with a wholesale/mortgage broker presence seemed to perform better than those without one.
Both banks have a wholesale presence, despite Bank of America ditching its wholesale program a while back before assuming Countrywide’s.
However, the third and fourth ranked lenders, Chase and CitiMortgage, which saw volumes fall 28 percent and 40 percent, respectively, have all but exited the wholesale channel.
Of course, it’s hard to attribute the presence of wholesale lending to overall production strength, but it might be indicative of the parent company’s risk appetite and desire to dominant the space.
It’ll be interesting to see the second quarter numbers, considering mortgage rates have skyrocketed back to levels not seen since the fourth quarter.