Banks and thrifts increased their holdings of first-lien mortgages by 0.7% during the second quarter of 2025 compared to the end of March. (Includes data table.)

Banks and thrifts have largely added to their overall holdings of residential first liens each quarter dating back to 2021. The decline seen in the first quarter of 2025 included a sharp drop in ARMs. (Includes data table.)

Debt service coverage ratio mortgages, residential transition loans and other alternative products include some unique features that can’t necessarily be handled well by servicing systems for standard residential mortgages.