Lending among the top 21 recipients of bailout funds through the Capital Purchase Program within the Treasury Department‘s Troubled Asset Relief Program (TARP) posted modest growth in May, with mortgage originations rising by 7% over April’s figures. Mortgage lending among the top 21 TARP recipients rose slightly to $122bn in combined originations in May, from $114bn in April. Home equity lines of credit slipped 12% to $3.79bn in combined originations in May. Wells Fargo (WFC) originated $42.1bn in first mortgages and Bank of America (BAC) posted $35.9bn in first mortgage originations. JP Morgan Chase (JPM) took the third slot with $13.8bn in originations, while while Citigroup (C) originated $9.7bn. Respondents to the Treasury’s survey indicated high mortgage application volume through May, but noted their pipelines decreased — particularly among home equity lines of credit — as interest rates rose toward the end of the month. “Many homeowners are electing to refinance their first lien mortgages and not to take on any additional debt via home equity lines of credit,” Treasury officials said in the May report. “Declining home values also contributed to lower home equity demand.” Growing financial pressure and higher unemployment rates also constricted consumer spending, and outstanding credit card balances held by the institutions dipped 1% in May as consumers largely refrained from adding to their existing credit card debt. Write to Diana Golobay. Disclosure: The author held no relevant investment positions when this story was published. Indirect holdings may exist via mutual fund investments.