Purchase money loans for Arvest Mortgage Company (AMC) grew from $818 million in 2012 to $934 million in 2013, according to a statement from the Northwest Arkansas-based bank.
Purchase money loans accounted for 43% of all mortgage loans in 2013, and for 33% in 2012. 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% in 2013, to just 36% in 2014.
“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,” Steven Plaisance, president and chief operating officer of Arvest Mortgage Company, said in the statement. “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.”
Arvest services 99% 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.
Arvest Bank operates more than 260 bank branches in more than 120 communities in Arkansas, Oklahoma, Missouri and Kansas through a network of 16 locally managed banks, each with its own board and management team.