The refinance boom has played havoc with the servicing portfolios of most lenders. Arbor National Mortgage Co., Westbury, N.Y., however, is an exception.

Arbor had a runoff rate of only 15.3% through September 1993. Some other top mortgage companies have runoff rates approaching 50%.

Joseph Heller, director of shareholder relations, said high-point, low-interest-rate loans were the major reason why Arbor had such a low runoff.

Demographics a Factor

He said Arbor's loan officers had been pushing the loans, which have such low rates that borrowers don't find it economical to refinance quickly.

Another reason for Arbor's success is its location. In the Northeast, Arbor's turf, taxes and other costs inhibit refinancing, Mr. Hellor said.

He said the battered real estate market in the Northeast also had been a factor. Many homes have declined in value, preventing their owners from refinancing.

Still, the 15.3% runoff was a jump for Arbor. Last year, just 12.64% of loans were prepaid.

"Regardless of what we are going to do, there is a tremendous amount of refinancing" said Arbor's Joseph Heller.

Arbor reported record mortgage originations for the third quarter and nine months that ended on Nov. 30, 1993.

The company also reported a record level in its servicing portfolio, which grew by 105% from the level a year earlier, to about $4.9 billion.

Loan originations for the quarter increased 44%, to $1.2 billion. For the nine months, originations jumped 72% to $3.4 billion.

Margaret Financial Corp. of Perth Amboy, N.J., reported loan production of $1.3 billion in November.

The output, which includes retail fundings and wholesale and correspondent purchases, was 66% higher than in November 1992.

The company said it produced $10.4 billion in loans for the year to date, compared with about $7.8 billion for all of 1992.

Retail closings for November totaled $822 million, 40% higher than those a year ago. About 61% were refinancings, compared to 52% in November 1992.

Wholesale and correspondent purchases totaled $355 million and $133 million, respectively, up from $187 million and $15 million.

For the year to date, Margaretten's retail fundings have totaled $6.3 billion, or 60% of total production.

Applications Soar

Through Nov. 30, 1992, the company produced approximately $5.4 billion in 'retail loans.

Wholesale and correspondent purchases through November, 1993 totaled $2.3 and $1.9 billion, respectively, compared with $1.3 billion and $302 million a year ago.

In 1993, wholesale and correspondent purchases have represented 22% and 18% of total production, respectively.

Retail Versus Wholesale

Loan applications for November totaled about $ 1.1 billion, an increase of 59%. Retail applications contributed 67% of the total, and 47% of those were refinances.

Wholesale applications of $357 million were more than double the year-ago total of $175 million.

Margaretten's servicing portfolio totaled $15.4 billion at Nov. 30, compared with $13.6 billion a year ago.

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