Arvest mortgage service revenue up 8%

Arvest Bank reported Tuesday (Feb. 21) an 8% increase in 2011 mortgage lending and servicing activities, from $553 million in 2010 to $598 million.

In contrast, the Mortgage Bankers Association projected 2011 purchase loans to be down 14% nationally.

“As the state’s largest mortgage company, we see the increase in purchase money transactions as a positive sign that homebuyers are looking for local lenders who emphasize service after the loan is originated,” Steven Plaisance, Arvest Mortgage executive vice president and chief operating officer, said in a statement.

The bank also originated more than $1 billion in new mortgage loans for purchases and refinancing for the ninth consecutive year. While the Mortgage Bankers Association predicted that mortgage loan values would decrease nationally by 20% in 2011 compared to 2010, Arvest originated refinance and purchase mortgage loans totaling $1.6 billion in 2011 compared to $1.78 billion in 2010, or a decrease of 10% over the previous year – significantly better than the national average.

Arvest services 99% of its mortgage loans, and the bank’s mortgage servicing portfolio reached a record of approximately 56,000 loans in 2011. The outstanding balance of these loans grew from $5.9 billion in 2010 to $6.3 billion in 2011, or an increase of more than 6% in the value of loans being serviced.

“The dip in interest rates in the fourth quarter of 2011 to near historic lows created a surge in mortgage loan originations. We are continuing to see the positive effects in 2012, as our business is up significantly from this time last year. Both the low interest rates and mild weather that we’ve experienced over the past few months have contributed to a successful first quarter at Arvest Mortgage,” Plaisance noted.

Arvest, with $11.99 billion in assets, operates more than 230 bank branches in Kansas, Missouri, Arkansas and Oklahoma. The bank’s majority owner is Jim Walton, son of Wal-Mart founders Helen and Sam Walton.