Non-Bank Share of Purchase Loans Increasing, Traditional Bank Share Decreasing;
VA Loan Share Pulls Back from Record High; FHA Loan Share Down to Two-Year Low
IRVINE, Calif. – March 2, 2017 — ATTOM Data Solutions, curator of the nation’s largest fused property database, today released its Q4 2016 U.S. Residential Property Loan Origination Report, which shows more than 1.7 million (1,748,177) loans were originated on U.S. residential properties (1 to 4 units) in the fourth quarter of 2016, down 15 percent from the previous quarter but still up 2 percent from a year ago.
More than 7.3 million loans were originated in 2016, up 2 percent from 2015 to the highest total since 2013.
Total dollar volume of loan originations in the fourth quarter increased 8 percent from a year ago to more than $461 billion ($461,291,961,501).
The loan origination report is derived from publicly recorded mortgages and deeds of trust collected by ATTOM Data Solutions in more than 950 counties accounting for more than 80 percent of the U.S. population.
“Refinance originations continued to post strong numbers compared to a year ago in the fourth quarter even as purchase originations decreased on a year-over-year basis for the second consecutive quarter,” said Daren Blomquist, senior vice president at ATTOM Data Solutions. “The increase in refinance originations is surprising given the rising interest rates in the fourth quarter, but many homeowners may have been trying to lock in still relatively low interest rates before those interest rates rose further.
“On the other hand, rising interest rates did seem to have a chilling effect on homebuyers using financing, as evidenced not only by the drop in purchase loan originations but also a corresponding rise in the share of cash buyers, drop in FHA buyer share and a rise in the average down payment percentage in the fourth quarter compared to the previous quarter,” Blomquist added. “For the year, the median down payment for loans secured by single family homes and condos was 6.0 percent of the median sales price nationwide, the lowest down payment percentage since 2012, but still close to twice the 3.3 percent in 2006 during the last housing boom.”
Biggest decreases in purchase originations in Naples, Austin, Fort Collins
A total of 595,500 purchase loans secured by U.S. residential property were originated in Q4 2016, down 26 percent from the previous quarter and down 12 percent from a year ago — the second consecutive quarter with a year-over-year decrease following eight consecutive quarters of year-over-year increases.
The total dollar volume of purchase originations in the fourth quarter was more than $161 billion, down 25 percent from the previous quarter and down 8 percent from a year ago.
A total of 2,777,222 purchase loans were originated in 2016, down 1 percent from 2015.
Among 99 metropolitan statistical areas with at least 2,500 loan originations in the fourth quarter, those with the biggest year-over-year decrease in purchase originations were Naples, Florida (down 23 percent); Austin, Texas (down 20 percent); Fort Collins, Colorado (down 19 percent); San Antonio, Texas (down 18 percent); and Reno, Nevada (down 15 percent).
Counter to the national trend, 56 of the 99 metropolitan statistical areas analyzed for the report (57 percent) posted year-over-year increase in purchase originations in the fourth quarter, led by Olympia, Washington (up 27 percent); Memphis, Tennessee (up 18 percent); Bremerton, Washington (up 18 percent); Spokane, Washington (up 18 percent); and Kansas City (up 17 percent).
Non-banks gaining share, big banks losing share in purchase loan originations
The top two purchase loan originators in Q4 2016 were so-called non-banks Quicken Loans (14,678) and Caliber Home Loans (12,075) followed by Wells Fargo (10,826) and Fairway (9,149) and JP Morgan Chase (7,994).
Among the top five purchase loan originators, the three non-banks all saw year-over-year increases in purchase loan originations: Quicken up 4 percent; Caliber Home Loans up 21 percent; and Fairway up 19 percent. Meanwhile the two traditional big banks in the top five both posted year-over-year decreases in purchase loan activity in Q4 2016: Wells Fargo down 5 percent; and JP Morgan Chase down 15 percent.
Biggest increases in refinance originations in Olympia, Spokane, Boulder
A total of 883,836 refinance loans secured by U.S. residential properties were originated in Q4 2016, down 6 percent from the previous quarter but still up 20 percent from a year ago — the second consecutive quarter with a year-over-year increase.
The total dollar volume of refinance originations in the fourth quarter was more than $246 billion, down 5 percent from the previous quarter but still up 27 percent from a year ago.
A total of 3,357,405 refinance loans were originated in 2016, up 4 percent from a year ago.
Among 99 metropolitan statistical areas with at least 2,500 loan originations in the fourth quarter, those with the biggest year-over-year increase in refinance originations were Olympia, Washington (up 108 percent); Spokane, Washington (up 77 percent); Boulder, Colorado (up 74 percent); San Diego (up 73 percent); and Eugene, Oregon (up 72 percent).
Biggest increases in HELOCs in Flint, Salt Lake City, Birmingham
A total of 268,841 Home Equity Lines of Credit (HELOCs) were originated during the fourth quarter, down 16 percent from the previous quarter and down 12 percent from a year ago.
The total dollar volume of HELOCs originated in Q4 2016 was more than $53 billion, down 12 percent from the previous quarter and down 8 percent from a year ago.
For the year, a total of 1,189,867 HELOCs were originated, up 2 percent from 2015.
Among 99 metropolitan statistical areas with at least 2,500 loan originations in the fourth quarter, those with the biggest year-over-year increase in HELOC originations were Flint, Michigan (up 26 percent); Salt Lake City, Utah (up 26 percent); Birmingham, Alabama (up 24 percent); Anchorage, Alaska (up 22 percent); and Dallas-Fort Worth, Texas (up 20 percent).
VA loan share pulls back from record high
A total of 128,577 loans backed by the U.S. Department of Veterans Affairs (VA) were originated in Q4 2016, down 16 percent from a record high in the previous quarter but still up 23 percent from a year ago.
VA loans originated in Q4 2016 accounted for 8.7 percent of all loans originated during the quarter, down from a record high of 8.8 percent in the previous quarter but still up from 7.4 percent a year ago.
FHA loan share drops to two-year low
A total of 226,142 loans backed by the Federal Housing Administration (FHA) were originated in Q4 2016, down 21 percent from the previous quarter and down 9 percent from a year ago.
FHA loans originated in Q4 2016 accounted for 15.3 percent of all loans originated during the quarter, down from 16.4 percent in the previous quarter, and down from 17.6 percent a year ago to the lowest level in two years — since Q4 2014.
ATTOM Data Solutions analyzed recorded mortgage and deed of trust data for single family homes, condos, town homes and multi-family properties of two to four units for this report. Each recorded mortgage or deed of trust was counted as a separate loan origination. Dollar volume was calculated by multiplying the total number of loan originations by the average loan amount for those loan originations.
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ATTOM Data Solutions is the curator of the ATTOM Data Warehouse, a multi-sourced national property database that blends property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, health hazards, neighborhood characteristics and other property characteristic data for more than 150 million U.S. residential and commercial properties. The ATTOM Data Warehouse delivers actionable data to businesses, consumers, government agencies, universities, policymakers and the media in multiple ways, including bulk file licenses, APIs and customized reports.
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