Philly Bank posts gains on strong loan originations

“Mortgage applications fell for the third consecutive week, reaching the lowest level since 2000. Likewise, with most mortgage rates more than two percentage points higher than a year ago, refinance demand continues to fall, with the MBA Refinance Index also falling to its lowest level in 22 years,” said Joel Kan, Associate Vice President of Economic and Industry Forecasting for the MBA. Buying declined for conventional and government loans as a weaker economic outlook, high inflation and ongoing affordability issues impact buyer demand. The drop in recent purchase orders aligns with slowing residential construction activity due to reduced buyer traffic, continued shortages of building materials and rising costs.

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The composite market index, a measure of the volume of mortgage applications, fell 6.3% on a seasonally adjusted basis from the previous week. On an unadjusted basis, the index rose 17% from the previous week. The refinancing index was down 4% from the previous week and was 80% lower than the same week a year ago. The seasonally adjusted purchase index fell 7% from the previous week. The unadjusted buy index was up 16% from the previous week and was 19% lower than the same week a year ago.

Fulton consummated its purchase of Prudential Bancorp and its Philadelphia-based subsidiary Prudential Bank this month. Prudential Bancorp shareholders approved the acquisition in June, with more than 98% of votes cast in favor of the deal, Fulton officials previously said.

Under the deal, Fulton now operates two banking subsidiaries – Fulton Bank, NA and Prudential Bank – until Prudential Bank is merged into Fulton Bank, officials noted. Fulton received approval for its bank merger application from the Office of the Comptroller of the Currency on June 13.

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