In addition, the government share of originations more than doubled to 11.8 percent in the first half of 2008 compared to 5.7 percent in the second half of 2007. The government loans category includes loans guaranteed or insured by the Department of Veterans Affairs, the Federal Housing Administration and Rural Housing Service.  The increase in the FHA loan limit, which broadened FHA financing for more borrowers, was one of the factors that contributed to the increased popularity of the FHA.

Other key findings from the survey (percentages are based on dollar volume of originated loans):

o The refinance share of all originations was 61.7 percent in the first half of 2008, compared to 54.8 percent in the second half of 2007.  The percent of refinance originations for rate or term purposes increased from 38.1 percent in the second half of 2007 to 48.6 percent in the first half of 2008. The refinance volume also increased 5.8 percent in the first half of 2008, based on data from repeater companies, which are participants that responded to the survey in both halves.

o For first mortgages, fixed-rate loans, excluding IOs, accounted for 78.5 percent of the dollar volume of originated loans in the first half of 2008, compared to 63.6 percent in the second half of 2007.

o In the first half of 2008, 82.7 percent of all origination dollars were for prime loans, compared to 79.0 percent in the second half of 2007, 3.8 percent were non-prime, compared to 7.5 percent in the second half of 2007, and 1.7 percent were Alt-A, compared to 7.8 percent in the second half of 2007.

o Originations of mortgages with deferred amortization (“interest only” or “IO”) continued to decrease significantly for both fixed and adjustable rate products from the second half of 2007. IOs accounted for 10.6 percent of originations in the first half of 2008, compared to 22.4 percent in the second half of 2007.

o In the first half of 2008, first-time homebuyer purchases represented 29.9 percent of the volume of purchase originations, compared to 27.9 percent in the second half of 2007. They represented 32.2 percent of the number of purchase loans in the first half of 2008, compared to 30.2 percent in the second half of 2007.

Estimates from MBA’s Mortgage Finance Forecast further demonstrate the trends in originations as purchase originations were down by 16.2 percent in the first half of 2008 compared to the second half of 2007.  Refinance originations were up 16.3 percent in the first half of 2008 compared to the second half of 2007.

This survey collects detailed information on first-lien and second-lien originations for single-family properties.  Information collected in this survey includes detailed origination data on various mortgage characteristics including loan type, product type, amortization type, first-time homebuyers and property type.

If you are a member of the media and would like a copy of the survey, please contact Melissa Key at
(202) 557-2799 or mkey@mortgagebankers.org. If you are not a member of the media and would like to
purchase the survey, please call (800) 348-8653.

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The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 370,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation's residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,400 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA's Web site:  www.mortgagebankers.org.