As we enter the third quarter of 2022, it’s time to look back and analyze how the second quarter rounded out. Recently, the Mortgage Bankers Association dove into the numbers and here’s what they found.

Borrowing increased

Mortgage loan originations for both commercial and multifamily properties rose 19 percent overall on a year-over-year basis. Broken down, retail lending increased 108 percent, hotel lending increased by 37 percent, industrial lending increased by 3 percent, and multifamily increased by 24 percent. In contrast, office lending decreased by 11 percent while healthcare decreased by 3 percent.

Compared to the first quarter of 2022, second quarter 2022 originations rose 15 percent overall. When broken down, retail originations rose 79 percent, healthcare rose 70 percent, multifamily rose 18 percent, offices rose 14 percent, hotels decreased by 2 percent, and industrial originations decreased by 26 percent.

IMBs and mortgage subsidiaries reported a net loss

Independent mortgage banks (IMBs) and mortgage subsidiaries of chartered banks reported an $82 net loss on each loan originated in quarter two of this year. Meanwhile, 84 percent of the institutions that participated were independent mortgage companies while 16 percent were subsidiaries and other non-depository institutions. This net loss was down from a $223 gain per loan in the first quarter. Only 57 percent of production and servicing operations in MBA’s report were profitable. MBAs key findings indicated average production volume declined, total production revenue decreased, total loan production expenses increased, and productivity decreased. Click here to read more about MBA’s key findings.

Mortgage delinquencies decreased in the second quarter

Delinquent was defined as loans in forbearance with a payment not made based on the original terms of the mortgage. Mortgage delinquencies for one-to-four-unit residential properties decreased to 3.64 percent (seasonally adjusted) of all loans outstanding and the lowest delinquency rate seen since the beginning of MBA’s survey in 1979. This is a decline of 47 basis points from the first quarter of 2022 and a decline of 183 points from the second quarter of 2021. This decline was seen from loans that were 90 days or more delinquent but not in foreclosure.

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