Mortgage origination volume jumped in January among some of the largest banking institutions receiving TARP funds, according to a new survey from the Treasury Department.
The survey, which covers the top 21 recipients of government investment via the Capital Purchase Program (CPP), found consumer loan originations increased at most institutions between December and January.
“Mortgage origination volume rose significantly in January 2009 reflecting a strong, sustained demand to refinance mortgages, which continues to be driven by lower interest rates,” the Treasury said in a release.
“The median percent change in mortgage refinancing was an increase of 110 percent from the December 2008 to January 2009.”
Wells Fargo led the way with $24 billion in first-mortgage originations, trailed closely by Bank of America with $22.9 billion and Chase with $9.6 billion.
Citigroup was fourth largest mortgage lender with $7.8 billion, followed by U.S. Bancorp with $4 billion and SunTrust with $3.5 billion.
Home equity line of credit lending was existent, but minimal at best. Bank of America led with $1.4 billion, followed by Citigroup with $769 million and Wells with $597 million.
Meanwhile, commercial real estate lending declined significantly between December and January, with renewals of existing loans down a median 45 percent and new commitments off 40 percent.
“The frozen securitization markets and lack of Commercial Mortgage Backed Securities activity continues to severely constrain transaction activity,” Treasury said.