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Survey: Thrifts Retain Most Loans.(Brief Article)

Mortgage Servicing News

| May 01, 2003 | COPYRIGHT 2003 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

More community banks and thrifts sold loans into the secondary market last year, but it still represented only 45% of their loan production, according to a survey by America's Community Bankers.

The ACB survey found that 72% of the respondents sold loans to the secondary market agencies and private wholesalers during the first nine months of 2002, up from 55% in 2001.

The 315 respondents sold $22.5 billion in residential mortgage loans, including $9.5 billion to Fannie Mae, $7.6 billion to private wholesalers/conduits and $3.2 billion to Freddie Mac. But they still retained $22.5 billion in originations on their books.

ACB concluded that "increased emphasis on working with community banks by participants in the secondary market could possibly lead to expanded sales ..."

Only 9% of the banks and thrifts in the survey participate in the Federal Home Loan Banks' Mortgage Partnership Finance program and the Mortgage Purchase Program and they sold only $888,000 in loans to the FHLBanks.

ACB director of ...

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Source: HighBeam Research, Survey: Thrifts Retain Most Loans.(Brief Article)

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