Purchase Money Loans Account For 68%
TULSA, Okla. — Arvest Mortgage Company announced today that it originated more than $1 billion in mortgage loans – both refinance loans and purchase money loans – through Sept. 30, 2014. As of Sept. 30, Arvest had closed a total of 6,853 loans with total loan value of $1,012,205,070. This marks the 12th consecutive year Arvest has originated $1 billion or more in mortgage loans.
Continuing the trend of the last two years, refinance loans continue to decline while purchase money loans grow as a percentage of total mortgage loan volume. The mix between purchase money and refinance loans at Arvest has inverted since 2012:
|Year||% Purchase Loans||% Refi Loans|
|2014 (through 9/30)||68%||32%|
“While the entire industry knew that refinances would continue to decline, we have been very pleased that our purchase money loans have remained strong and outpaced national projections. This indicates that consumers in our area are continuing to buy new homes and looking for local lenders to help them,” said Steven Plaisance, president and chief operating officer of Arvest Mortgage Company.
The overall volume and dollar value of purchase money loans made at Arvest have declined slightly from the same period a year ago, but this decline is less than the drop forecasted in September by the Mortgage Bankers Association. As of Sept. 30, 2014, Arvest has made 4,591 purchase money loans with total loan value of $686,165,920. At Sept. 30, 2013, the bank had made 5,006 purchase money loans with total loan value of $740,573,626 – an 8.3 percent decline in volume and a 7.3 percent decline in value. The Mortgage Bankers Association forecasted a 13 percent decline in purchase money loan values nationally.
The average loan value at Arvest increased over the same period last year, from $147,937 to $149,459, reflecting improving values in the real estate market.
“The continued shift from refinance loans to purchase money loans means that there are still plenty of opportunities for new home buyers, especially considering that rates remain very low.”
Arvest is unique among most local lenders in that it services 99 percent of its mortgage loans, meaning that customers make their payments to Arvest and deal with Arvest for any needs after their loan closes.