U.S. Thrifts Post Loss of $617 Million in First Quarter

Los Angeles Times (05/28/08)
The Office of Thrift Supervision (OTS) reports an industry net loss of $617 million for the first quarter, versus a loss of $8.75 billion in the fourth quarter and a profit of $3.61 billion in the 2007 first quarter. Additionally, loan-loss reserves were hiked 38 percent by savings and loans to a record $7.6 billion from $5.5 billion in the October-through-December period. Over the same time span, mortgage originations by savings and loans fell 20 percent to $133.7 billion from $166.6 billion; and delinquent and foreclosed assets rose to 2.06 percent from 1.66 percent of industry assets. Along with the report, OTS director John Reich announced plans to issue a proposal calling for an expansion of the agency to oversee mortgage bankers and brokers; and he voiced opposition to a Treasury Department plan to merge the OTS into the Office of the Comptroller of the Currency. He noted that "to no have a regulator agency that has as its primary focus mortgage finance and housing seems to be counterintuitive and contrary to how we ought to be responding to the current housing correction."