WASHINGTON -- Following the downward slide of first mortgage originations in the first half of 2006, first mortgage subprime originations volume is also down, according to the Mortgage Bankers Association's Subprime Mortgage Origination Survey.
Among the key findings of the recently released survey results: oFirst mortgage subprime originations declined 30% from the second half of
2005 to the first half of 2006. Subprime loans comprised 19% of all originations
in the first half of 2006.
oFor the first half of 2006, 55% of subprime originations were for refinance pur
poses compared with 60% in the second half of 2005. Among subprime refinances,
75% were for cashout purposes compared with 88% for the second half of 2005.
oSubprime loans for home purchases declined 25% between the second half of
2005 and the first half 2006. Prime loans for home purchases only dropped 6%
for the same period.
oBased on loan count, one in four subprime purchase loans were made to a first-
time homebuyer.
oThe average loan amount for subprime loans in the first half of 2006 was
$200,167. That's 7% higher than the average loan amount for subprime loans of
$186,790 in the second half of 2005.
oARM loans made up 67% of subprime originations in the first half of 2006 compared to a 74% share of subprime originations in the second half of 2005.
As for subprime second mortgages, they declined 14% in dollar value from the second half of 2005 to the first half of 2006, but they increased in number by 57%. The average loan amount was $33,555, a drop from $52,382 in the second half of 2005.
-- egbarr06@bellsouth.net
