IRVINE, Calif.–Public records data show that the dollar volume of all mortgages – purchase and refinance combined – originated in 2016 was nearly $2 trillion, a 15% increase over the 2015 origination amount, according to analysis released by CoreLogic.
The number of all mortgages originated last year increased 10% from 2015 to just shy of eight million mortgages. Last year’s originations were tilted slightly toward refinancing, CoreLogic said, which jumped year over year by 19% in dollars and 13% in number and accounted for just over half of mortgages originated in 2016. CoreLogic added that 2016’s purchase originations increased year over year by 11% in dollars and 7% in number. The purchase originations increase was due to an increase in home sales, a decrease in the share of homes purchased with all cash, and strong home price appreciation, the company said.
CoreLogic noted that the annual Home Mortgage Disclosure Act (HMDA) data is expected in mid-September, at which point details on mortgage lending for 2016 will be made public by federal regulators. CoreLogic said its public records data on mortgage originations tracks well with HMDA.
“HMDA typically under counts total market originations, because some lenders are exempt from HMDA reporting, and many analysts estimate that lenders reporting under HMDA represent about 95% of the total market,” CoreLogic said. “Taking into account under coverage, CoreLogic estimates that total market originations for 2016 were approximately $2.1 trillion.”
CoreLogic said the public records data also shows that nonconventional loans continued to make up a large share of first-lien originations. The government share of first-lien mortgages held steady at 25% in 2016, CoreLogic said, adding that while there was a small decrease in the FHA share, there was an offsetting increase in the VA share.