Magazine article American Banker

Banks Rise in Originations as Thrifts Fall from Top 10

Magazine article American Banker

Banks Rise in Originations as Thrifts Fall from Top 10

Article excerpt

Banks are in and thrifts are out.

That was the big story in the mortgage industry last year, as indicated by American Banker's rankings of the 100 top originators and servicers of home loans. (See tables beginning on page 10.)

For the first time in decades, no thrift company was among the top 10 mortgage originators last year. Adjustable-rate mortgages, the thrifts' bread and butter, were out of favor at the same time that major thrifts were in the midst of redefining their business.

As a result, Home Savings of America, the nation's biggest thrift, plunged to No. 16 in originations, from No. 9. Among the other large savings institutions, Great Western dropped a notch, to No. 13; World Savings fell five places, to No. 19; and American Savings sank seven places, to No. 25.

Bucking the trend was Standard Federal Bank of Troy, Mich., which surged to 11th place, from No. 24, as it ambitiously expanded through acquisitions and internal growth. Standard is dwarfed in assets by the top thrifts, but it has been operating more as a mortgage banking company than as a savings institution and thus is less affected by consumers' preference for fixed rate loans. This route may yet be taken by its bigger rivals.

But commercial banks were another story. They increased their market shares last year in a wave of acquisitions and mergers. Leading this trend was Norwest Corp., which showed a gain of 36% in originations and 48% in servicing. …

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