Skip to main content

Lenders One reports record growth during industrywide contraction

Jul 29, 2008

Second half 2007 mortgage originations show preference for fixed-rate over ARMsMortgagePress.comMBA, fixed rate loans, ARMs, Mortgage Originations Survey The demand for fixed rate mortgage products increased in the second half of 2007 according to the Mortgage Bankers Association's (MBA) Mortgage Originations Survey. This demand was largely due to a substantial decline in long term interest rates and the narrowed spread between the adjustable rate mortgage (ARM) and fixed mortgage rates. Tightened lending standards for subprime and nontraditional loans, where ARM loans were historically more popular, also reduced ARM originations. In addition, as lending standards became more stringent, the origination of mortgages with deferred amortization ("interest only" or "IO") decreased. Key findings from the survey (percentages are based on dollar volume of originated loans, unless noted otherwise): • For first mortgages, fixed-rate loans (excluding IOs) accounted for 63.6 percent of loans in the second half of 2007 compared to 53.4 percent in the first half of 2007. • In the second half of 2007, 79.0 percent of all origination dollars were for prime loans compared to 70.0 percent in the first half of 2007, 7.5 percent were non-prime (10.4 percent in the first half of 2007), and 7.8 percent were Alt-A (15.8 percent in the first half of 2007). • The government insured share of originations increased (FHA and VA), as FHA loans replaced subprime and other nontraditional loans. In the second half of 2007, 5.7 percent of origination dollars were government insured loans, compared with 3.8 percent in the first half of 2007. • First-time homebuyer purchases represented 30.2 percent of the number of purchase loans in the second half of 2007, a slight decrease from 32.6 percent in the first half of 2007. The average loan amount for first time purchases increased to $215,185, compared to an average loan amount of $202,265 in the first half of 2007. Survey participation included mortgage bankers, commercial banks and thrifts and many of the top HMDA originators. Information collected in this survey includes detailed origination data on various mortgage characteristics including loan type, product type, amortization type, first-time homebuyers and property type. For more information, visit
About the author
Jul 29, 2008
CMG Acquires Norcom Mortgage's Retail Side

The 25-branch addition will enhance CMG’s northeastern presence from Maryland to Maine.

Apr 12, 2024
CFPB Weighs Title Insurance Changes

The agency considers a proposal that would prevent home lenders from passing on title insurance costs to home buyers.

NEXA Begins Search For New CFO

NEXA CEO retires the president position after Mat Grella's termination.

Apr 01, 2024
Recessions: Know What’s What

Volatile components present few indications about subsequent growth

Mar 28, 2024
Co-Founder Mat Grella Terminated From NEXA

NEXA CEO Kortas states negotiations regarding the buyout will continue.

Mar 27, 2024
Comings And Goings At AmeriHome

Chief Operating Officer John Hedlund announced his retirement on Thursday in a LinkedIn post.

Mar 22, 2024