NEW YORK ( TheStreet) -- On the back of rock bottom interest rates and a recovery in housing, banks extended the most home loans since 2007, according to Lender Processing Services' latest Monthly Mortgage Monitor report.
About 8.6 million new loans were originated in 2012, up 34% year-on-year. That is still way below historical standards and is still primarily backed by government-sponsored Fannie Mae, Freddie Mac and the Federal Housing Administration.
The agencies now back 84% of all originations, compared to 69% in 2007 and 52% in 2005.
Still, the trend over the last four years suggests "a slowly resurgent non-agency lending market," according to Herb Belcher, Senior Vice President at LPS Applied Analytics.His remark echoes comments by participants at a recent conference organized by the American Securitization Forum. Private investors are likely to buy more mortgages in 2013, though
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