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A survey by America's Community Bankers shows that thrifts and savings banks retained most of their loan production last year due to rising interest rates.
But what little they did sell ended up mostly in the hands of private conduits and wholesalers, not Fannie Mae and Freddie Mac.
"As rates rose [last year], the broad trend in the community banking industry was to focus on portfolio lending strategies; that is originating and holding mortgages in portfolio," Steve Davidson, ACB's financial economist said.
The 223 respondents to ACB's real estate survey sold only 17% of their loan production into the secondary mortgage market. Nearly two-thirds of those loans were sold to private conduits or ...
Source: HighBeam Research, Thrifts Held Loans, ACB Survey Shows.(Brief Article)