Thursday, August 28, 2008

FHA Mortgage Leading Lenders for July: Results

The top ten FHA retail mortgage lenders for July 2008 are

1) Countrywide,
2) Wells Fargo,
3) B of A,
4) JP Morgan Chase,
5) National City,
6 ) First Horizon,
8) Suntrust,
9)Quicken Loans, &
10) Allied Mtg Cap.

Countrywide was merged into B of A. First Horizon acquired by Metlife Bank. These rankings are based on retail (as opposed to wholesale). So who won the contest?

Wednesday, August 27, 2008

Wowee Zowee!!! FHA Mortgages Climbing High for July!

Click on chart for larger image.

The chart shows the month surge in FHA mortgage originations. This is the highest number since September 2003. Can you guess who are the top 10 leading lenders?

Tuesday, August 26, 2008

Universal American Losing Market Share In Harris County

Even though Universal American Mortgage is the leader for the FHA market in Harris County, Texas January through July 2008, their market share is declining. See the accompanying chart. This is happening while the overall marketplace for FHA is continuing to increase.

Friday, August 22, 2008

Las Vegas Mortgage Business. YUK!

Yea we know! Same old story. We still have to tell it like it is. If your a mortgage banker in Las Vegas, these days your having trouble making money. You can't even fund the casinos.

There are some interesting findings. In the second quarter of 2008, total conventional purchase mortgages in Las Vegas was roughly $550 million. During the same period of 2007 conventional purchase mortgages in Las Vegas exceeded $1.6 billion. Down a $billion year over year. Hey Donald its a billion with a 'B' !

Recently, FHA purchase mortgages have been increasing more than a little bit in Las Vegas. The April to June quarter of 2007 had roughly $38 million of FHA purchase originations in Las Vegas. For the April through June period of 2008, FHA purchase money originations zoomed upward to roughly $358 million. The FHA volume was ten times greater in the second quater of 2008 as compared with the same period in 2007.

So what do you think is happening in Las Vegas? Perhaps MGM's City Center and Donald Trumps' International Hotel and Towers have employed non profit down payment assistance grants with FHA mortgages to help their customers purchase housing units?

What happens in Vegas ....

Thursday, August 21, 2008

Jumbo Mortgages - No Boost in Sales

The chart shows the monthly percentage of $jumbo purchase mortgages to all conventional purchase mortgages. $Jumbo mortgages in the data are mortgages having mortgage amounts greater than the conforming loan limits set by HUD. The data in the chart does not use the new maximum mortgage amounts that the GSEs can purchase as a result of recent legislation (economic stimulus legislation temporarily set the conforming loan limit as high as $729,750 until December 31, 2008 and it is location dependent).

In 2005, $jumbo mortgages were conventional mortgages greater than $359,650. In 2006, 2007, and 2008 $jumbos were mortgages greater than $417,000 (the data in the chart does not adjust for higher conforming limits in high cost areas). The step downward of percent $jumbo in the chart following December 2004 and December 2005 was caused by the increases in the conforming mortgage loan limit. There was an increase in the conforming loan limit between 2003 and 2004 however the percent of $jumbos were rapidly increasing in step with the surging prices of homes at that time.

Over the past several years the percentage of $jumbo mortgages versus all conventional purchase mortgages was above 10 percent. Since last August, the percentage of these $jumbo mortgages moved down towards to 5 percent. What are the reasons why the proportion of $jumbos do not return to the levels of prior years? Here are some explanations:

  • The GSEs have not made the new $jumbos attractive for their seller/servicers to effectively sell these products to home purchasers.

  • The prices of homes have fallen so that demand for $jumbo mortgages to purchase the homes have fallen

  • There is hardly any secondary mortgage market for $jumbo mortgages

  • All of the above

Wednesday, August 20, 2008

New Hampshire Conventional Mortgages

As New Hampshire conventional mortgages continue to decline over the past year, Merrimack Mortgage has continued to work through the decline capturing a top five seat for all of New Hampshire's market share. As we have previously viewed this week, Merrimack Mortgage continues to rise and beat out powerhouses such as Wells Fargo and Countrywide in government insured mortgages and now we find them coming close in conventional mortgages. The graph shows the monthly conventional purchase mortgage originations over the past years and one can see the decline in these mortgage sales. What is continuing to help Merrimack in this depressed New Hampshire home purchase market?

Tuesday, August 19, 2008

New Hampshire VA Mortgages

While Merrimack Mortgage approaches Wells Fargo in FHA mortgages, they are dominating originations of VA mortgages in New Hampshire. Out of all the VA mortgages originated during the current quarter, Merrimack Mortgage is responsible for over a fifth of those, doubling the number of Wells Fargo. Through the end of the forth quarter in 2007 Merrimack, trailed Wells Fargo in market share. During the first two quarters of 2008 Merrimack’s market share has exceeded Wells Fargo market share. In the most recent quarter ending June, Merrimack Mortgage lead all lenders in New Hampshire with a 20.8% market share and Merrimack exceeded Wells Fargo by nearly 10%.

Is the national elephant capable of retaining their top position in New Hampshire or will the local strong man remain the giant?

Monday, August 18, 2008

Merrimack Mortgage is Growing the Fastest in New Hampshire

Merrimack Mortgage of Concord, NH is making the most of the growth of FHA mortgages in New Hampshire. So far this year, Merrimack Mortgage has moved into second place just behind Wells Fargo Mortgage with a 6.94% market share.

Click Chart for Larger Image

For the first 6 months of 2007, Merrimack Mortgage was ranked 13th with less than a 2% market share. $19.5 million year over year increase in FHA originations makes Merrimack Mortgage the fastest growing mortgage originator of FHA mortgages in New Hampshire.

Friday, August 15, 2008

FHA Lending in New Hampshire Sets Record in June 2008

In New Hampshire, we have not seen this number of FHA mortgages in a single month since at least before 2003. More than 350 FHA mortgages in a single month. The mortgage amounts reached new monthly records for the past three months.

Click on the chart to view larger image

Hudson City SB- Winner Despite Crummy Mortgage Market

The NY Times reports Hudson City Savings Bank profits while other banks and mortgage lenders suffer losses.

The mortgage data shows Hudson City's mortgage market success. In Connecticut, Hudson City Savings has moved into third place, right behind Bank of America and Wells Fargo in the rankings of conventional purchase mortgage originators. For conventional purchase mortgages, Hudson City has nearly a 6 percent market share. If we compare all lenders originating jumbo mortgages (which for ease of reporting we use mortgage amounts greater than $417,000), Hudson City Mortgage is number one in Connecticut approaching a 20 percent market share. Just two years ago, Hudson City Savings Bank, of Paramus, NJ was ranked 54th in conventional mortgage originations and 13th with Jumbo mortgages. Hudson City's mortgage dollar volume is up this year while almost all other mortgage lenders in Connecticut are substantially down this year as compared with prior years.

Connecticut, like almost everywhere else, has experienced a shrinking market for conventional purchase mortgages. The accompanying chart shows the consistent decline year over year of conventional purchase mortgage originations in Connecticut. The chart shows that the proportion of jumbo mortgages relative to all conventional mortgages has also declined. Fewer originators seem willing to offer jumbo mortgages even though recent legislation allows mortgages as high as $729,750 to be sold to the GSEs.

In the declining market Hudson City continuously grows mortgage originations.

Since Hudson City appears to focus on jumbo mortgages, their results show that they are dominating that segment of the mortgage market in Connecticut. So if no one else wants to finance jumbo size mortgages, Hudson City is ready to handle it! Look at their market share soar!

Wednesday, August 13, 2008

Stifel Bank & Trust Rapidly becomes a Leading Lender in St. Louis

Stifel Bank and Trust, a recent acquisition of Stifel Financial, rises to the top ten conventional purchase mortgage lenders in the St. Louis metropolitan area. The accomplishment is special since Stifel Bank and Trust recently started mortgage lending in this market.

Click the chart for a larger image

In St. Louis, this young bank now shares mortgage origination leadership with companies such as Pulaski Bank, Bank of America, Wells Fargo, US Bank, and PHH Mortgage. Each of those companies have originated substantially fewer mortgages in the first half of 2008 as compared to 2007.

The St. Louis metropolitan area mortgage market has been down significantly. The monthly trend shows a slowdown in St. Louis. Stifel Bank and Trust's mortgage origination growth under these difficult circumstances makes them a mortgage lender to watch.

We will watch and report back periodically!

Friday, August 8, 2008

VA Average Mortgage Passes $200K

During the months of February through June of this year, the average VA mortgage loan amount exceeded $200,000. The average loan amounts of government insured FHA mortgages and VA guaranty mortgages have been increasing each month. Note on the accompanying chart the spread between the average VA mortgage loan amount and the average FHA mortgage amount. Except for the past two months, the spread was increasing.

Nationwide, the average VA mortgage amounts have been exceeding the average FHA mortgage amounts by roughly 15 percent. For mortgage originators generating loan origination fees, VA mortgages are going to provide more revenue per unit. The problem for originators is that VA mortgages are not necessarily the most appealing mortgage product for eligible veterans. Although the volume of VA mortgages have been increasing, the number of new VA mortgages is under 20,000 units per month.

Wednesday, August 6, 2008

Monarch Home Funding Grows with Conventional Mortgages. Increases Market Share in Virginia Beach.

Yesterday I reported that Monarch Home Funding increased their Veterans Administration mortgage market share in Virginia Beach. Monarch Home Funding also makes great strides with conventional purchase mortgages for Virginia Beach, Virginia. The chart shows the rapid market share growth that Monarch Home Funding has achieved with conventional purchase mortgages in the Virginia Beach metropolitan area market.

Click on the chart for a larger image

Tuesday, August 5, 2008

Big Winners in a Dismal Mortgage Market - Monarch Market Share Soars!"

Since entering the Virginia Beach-Norfolk-Newport News market in early 2004, Monrach Home Funding has continued to increase their market share in the VA product area. Monrach's market share has particularly increased since the latter half of 2007. Take a look at the accompanying chart.

Monday, August 4, 2008

Average FHA Mortgage Amount Continues to Grow!

The Economic Stimulus Bill that temporarily raised FHA Mortgage Amount Limits to as high as $729,500 in certain areas looks like it has played a factor in the actual average amount for FHA Mortgages. The accompanying chart shows how the Average FHA Mortgage Amount is growing every month.

Since the Housing Bill became law last week that includes a permanent increase the FHA Loan Limits, can we expect this to continue to increase every month?

Friday, August 1, 2008

Where is the Bull Market in Mortgages? We Help You Find It!

In June 2008, FHA mortgages posted two new records of the decade. The average mortgage amount of $172,933 for FHA mortgages in June was the highest average mortgage amount ever. The total dollar amount, $21.1 billion, was the highest monthly FHA mortgage total amount since we started tracking the the data in year 2000. June 2008 had the fifth highest number of FHA mortgage originations since year 2000.

The Economic Stimulus Act of 2008 (Public Law 110-185) included an increase to the maximum mortgage amount for FHA mortgages. That act temporarily allowed the maximum FHA mortgage to be as high as $729,750 for this year. The housing relief legislation signed this week makes permanent maximum FHA mortgage amounts as high as $625,500 in high cost areas. Over the next few months we expect to see the average mortgage size of FHA mortgages continue recording new highs.

Click on the chart for a larger image

The chart shows the monthly number of FHA mortgage originations since January 2000. June 2008 was the highest since October 2003.

The total monthly volume increases of FHA mortgages is partly related to an increase in the maximum FHA mortgage amounts. The new mortgage amount ceilings make FHA mortgages useful given price levels of homes. Conventional mortgages were available for prime borrowers having substantial down payments or lower down payments with private mortgage insurance. Since the latter half of 2007, FHA mortgages were the only option available for residential finance for many borrowers who could not qualify for conventional financing.

True! I stole the headline from Cramer.