The nation's thrifts are harvesting a bumper crop of loans for new homes.
The top 40 thrifts in this business boosted their production of new-home loans by a stunning 115% in the first half of this year, according to an American Banker survey.
The surge is just one more indication of an economy on the mend, lenders say. And it bodes well for thrifts trying to position themselves for a post-refinancing era.
Increase Called |Amazing'
The extent of the first half's pickup in new-home lending surprised even the thrifts that led the trend.
"Amazing," said Tee W. Tyler, a regional vice president at Utah's United Savings Bank.
That thrift's production of new-home loans climbed almost 37 times in the first half of 1993 from the corresponding period a year earlier, to $136.5 million.
"I knew we were doing better," Mr. Tyler said. "I didn't know we were doing that much better."
|Robust Demand' Cited
It's mainly the economy that's making such surges possible, lenders say.
"There is certainly a health there, a robust demand," said Gerald Hartman, president of Colonial Savings, Fort Worth, Tex.
As Colonial illustrates, there is ample room in this market for relatively small players. With less than $675 million in assets, Colonial has been managing to top industry giant Home Savings of America in production of new-home loans. Colonial ranked No. 5 in the loans in the first half, while Home was No. 11, the survey found.
Hard Work Called a Factor
A none-too-bashful Mr. Hartman attributed Colonial's success to hard work.
But Sam Lyons, senior vice president of mortgage banking at Great Western Bank, the No. 3 thrift in new-home loans, said some of the smaller lenders on the list are amassing the credits as an automatic offshoot of construction lending.
That's not all bad. Mr. Lyons said lenders must develop more business in loans for home purchases, to replace the refinancing volume.
"It's definitely life-after-refi strategy," said Mr. Tyler of United Savings Bank of Utah.
