NEWS RELEASE FROM ARVEST BANK
Arvest Bank Has Best Purchase Money Mortgage Year Yet
Strong 2013 numbers means growth for local economies
JOPLIN, Missouri, (April 25, 2014)— Arvest Mortgage Company (AMC) has seen strong purchase money mortgage activity over the past two years. In 2012, Arvest originated $818 million in purchase money loans, and in 2013 that number grew to $934 million.
Purchase money loans accounted for 43 percent of all mortgage loans in 2013, and for 33 percent in 2012. Simply put, a purchase money loan is a loan used to buy a home, rather than any type of loan that is taken out after you buy a home such as a home equity line of credit or a refinance mortgage. A borrower can obtain a purchase money loan from a bank, a credit union or a private source of funds.
This increase in purchase money activity comes as refinance activity has slowed in recent years. The Mortgage Bankers Association (MBA) has projected 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. 1
“We saw a strong growth in purchase money mortgages in 2013, and are anticipating continued growth in 2014 as refinance loans continue to decrease in 2014,” said Steven Plaisance, president and chief operating officer of Arvest Mortgage Company. “The continued increase in purchase money transactions is a positive sign and we know that homebuyers are looking for local lenders who can be with them through every step of the mortgage process. That personal level of service is always our top priority.”
“I am excited that purchase money activity looks like it will continue to grow this year. That means growth for local housing markets and the local economies of the communities we serve,” Plaisance continued. “This shift from refinance loans to purchase money means that there are still plenty of opportunities for both new home buyers and those who wish to refinance their current mortgage. Rates are still historically a bargain, and buyers can use that to their advantage.”
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 had a strong 2013, servicing more than 66,000 loans. The total value of loans serviced in 2013 was more than $ 7.7 billion.
Plaisance continued, “The continued presence of low interest rates in 2013 resulted in positive growth for mortgage loan origination. We expect to continue to see the positive effects of that this year with more growth in purchase money originations, and look forward to helping Arvest Mortgage customers throughout 2014.”
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