Mortgage originations at the big-four banks increased 37% in the second quarter from last year because of the expanded Home Affordable Refinance Program.

Wells Fargo (WFC), JPMorgan Chase (JPM), Bank of America wrote $205.8 billion in new mortgages in the three months ending June 30, according their combined financial filings.

Originations also increased 7% from the first quarter.

Wells continued to dominate. The San Francisco bank wrote $131.9 billion in new loans during the quarter, more than double originations from the same period last year. Wells said 16% of those new loans came through the Home Affordable Refinancing Program.

The Federal Housing Finance Agency expanded HARP last year to eliminate upfront costs, negative equity caps and some repurchase risk on the original loan – pushing more business to the largest banks.

Wells said 69% of its record $208 billion in mortgage applications were from borrowers looking to refi under HARP.

Legislation lingers in a grid-locked Congress to expand competition in the program by eliminating repurchase risk on the new loan as well. But analysts predict the HARP boom could begin to fade into autumn, well before any new legislation is expected to pass.

Chase wrote $43.9 billion in new mortgages during the quarter, up 29% from last year and 14.3% from the previous quarter. Originations at its retail branches set a bank record at $26.1 billion.

Bank of America continues to feel the drop off from exiting its correspondent lending channel last year. Originations fell 55% from one year ago to roughly $18 billion, the only yearly decline of the big-four lenders.

The bank ceased selling some mortgages to Fannie Mae as well, though executives said in an investor conference call that it regained some lost retail market share.

Citi originations totaled $12.9 billion, up 17% from last year but still down 10% from the previous quarter.


About the Author

Most Popular Articles

Freddie Mac: Mortgage rates reverse course from last week’s low

This week, the average U.S. fixed rate for a 30-year mortgage jumped to 3.69%. That’s still more than a percentage point lower than the 4.85% of the year-earlier week.

Oct 17, 2019 By

Latest Articles

Dallas tornado leaves 15 miles of homes with at least 50% damage probability

Tornados hit Dallas Sunday night, one gliding along the ground for about 15 miles. The area has at least 50% destruction probability, CoreLogic data shows.

Oct 21, 2019 By