Arvest Mortgage Company Hits $2 Billion Mark

Monday, November 25 at 09:50 AM
Category: Arvest News

Arvest Mortgage Company has already originated $2 billion in mortgage loans this year. The uptick in new purchase loans is expected to carry into 2014 as refinance loans decline.

LOWELL, Ark., — Today Arvest Bank announces that the bank has originated more than $2 billion in mortgage loans – both refinance loans and purchase money loans – through November 15, 2013. This marks the second time that Arvest Mortgage has reached the $2 billion in loans, with the first time being last year. Through October of 2013, purchase money loans increased by 15 percent compared to the same period in 2012 - from $704 million to $811 million. The mix of purchase money loans and refinance loans changed during that period from 33 percent purchase and 67 percent refinance in 2012, to 41 percent purchase money loans and 59 percent refinance in 2013.

The Mortgage Bankers Association (MBA) is seeing and projecting* a continued decrease in the percentage of refinance mortgages originations this year. The MBA is projecting that refinance mortgage originations will fall from 62 percent in 2013, to just 36 percent in 2014.

“I’m excited that we have reached the $2 billion milestone again, and the continued increase in purchase money transactions is something we see as a positive sign,” said Steven Plaisance, President and Chief Operating Officer of Arvest Mortgage Company. “This year we saw a drop in refinance originations, and I’m anticipating further declines in refinancing in 2014 as well.  At Arvest we recognize that homebuyers are looking for local lenders who will focus on customer service after the loan is originated. That personal level of service is our number one priority.”

“We are very optimistic about the expected increase in purchase money activity over the next year and the impact it will have on the local housing market and the economy,” stated Plaisance. “This shift from refinance loans to purchase money just means that there is still plenty of opportunity for both new home buyers and those who wish to refinance their current mortgage. Rates continue to be a bargain historically, and should stay that way for some time.”

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. Arvest’s mortgage servicing portfolio has had a strong 2013 so far, reaching approximately 65,600 total loans. 62,000 loans were serviced in 2012. The outstanding balance of these loans is $7.66 billion through October, the value of loans serviced in 2012 was $7.1 billion.

Plaisance continued, “The continued presence of low interest rates in 2013 resulted in positive growth for mortgage loan originations. We expect to continue to see the positive effects in 2014 with a shift towards more purchase money originations, and look forward to helping Arvest Mortgage customers as we finish out this year.”

Links marked with * go to a third-party site not operated or endorsed by Arvest Bank, an FDIC-insured institution.

Tags: Home Loans, Mortgage, Press Release
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