Arvest Bank on Thursday (Feb. 7) announced that that its operations in 2012 results of originated more than 17,000 mortgage loans – refinance loans and purchase money loans – totaling $2.56 billion in 2012 compared to $1.58 billion in 2011, a 62% increase.
The bank reported a 37% increase in the value of purchase money mortgages, from $597 million in 2011 to $818 million in 2012, significantly higher than the projected increase in such loans nationally. The Mortgage Bankers Association (MBA) projected 2012 purchase loans to be up 9% nationally from 2011.
“We see this increase in purchase money transactions as a positive sign and recognize that homebuyers are looking for local lenders who will focus on customer service after the loan is originated,” Steven Plaisance, Arvest Mortgage’s president and chief operating officer, said in a statement.
Mortgage growth continues to be positive around the country, with the Mortgage Bankers Association predicting strong growth in 2013. In a statement, Jay Brinkmann, MBA's chief economist, said that growth in new-home sales and modest home price increases would both contribute to an increase in 2013 purchase originations.
Arvest is unique among most local lenders in that it 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, according to the Arvest statement.
Arvest’s mortgage servicing portfolio also had a record year, reaching approximately 62,000 loans in 2012. The outstanding balance of these loans grew from $6.3 billion in 2011 to $7.1 billion in 2012, or an increase of 12% in the value of loans being serviced.
Arvest Bank operates more than 230 bank branches in Arkansas, Oklahoma, Missouri and Kansas through a network of 16 locally managed banks, each with its own advisory board of directors and management team.