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