David M. Partridge, managing principal at Towers Perrin Consulting Group, expects mortgage origination volume to remain significantly below 1993-94 record levels this year.

"Combined with the downward pressure on earnings from variable-rate mortgages they've offered in the past 24 months - mortgages that can't be repriced as fast as their underlying cost of funds - some thrift institutions will be back in trouble," Mr. Partridge predicts.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.