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Article: Adaptable smaller thrifts shifting fast to adjustables. (adjustable-rate mortgage loans) (The New Mortgage Market)
- Article from:
- American Banker
- Article date:
- June 27, 1994
- Author:
CopyrightCOPYRIGHT 1994 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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When conditions suddenly shift in the mortgage market, the nation's smaller thrifts are often the first to adapt.
As consumers clamored for-fixed-rate loans during the refinance boom of the past two years, small thrifts quickly embraced the ways of mortgage banks. They wrote fixed-rate mortgages, sold them into the secondary market, and retained the lucrative servicing rights.
Now, as adjustable-rate loans return to favor, the thrifts are starting to produce those with gusto, usually to hold in their portfolios. At some thrifts, virtually all new mortgages are now adjustables for the portfolio, a complete reversal from last year.
This readiness to shift strategies ...