Loan payoffs rise in 2013, but drop in 4th quarter



  • Colorado Division of Housing releases a report.
  • Report tracks home loan payoffs.
  • Loans are often paid off during refinances or sales.

The number of home loans paid off in Colorado rose by 13 percent in 2013 from 2012, according to a state report released today.

However, the number of home loans paid off dropped by 28.2 percent in the fourth quarter of 2013 from the fourth quarter of 2012, according to the report by the Colorado Division of Housing.

Last year, public trustees in Colorado released 344,942 deeds, the highest level recorded since 2004, when 400,565 deed were released.

Public trustees released a total of 62,312 deeds of trust during the fourth quarter of 2013, compared to 86,816 released during the fourth quarter of 2012.

Typically, a release of a deed of trust occurs when a real estate loan is paid off whether through refinance, sale of property, or because the owner has made the final payment on the loan. Increases in release activity occur as refinance and home-sale activity increases, and rising release totals generally indicate increases in the demand for home loans and real estate.

“The fourth quarter of 2013 saw some big drops in release activity in response to interest rates heading up during the second half of the year,” said Ryan McMaken, an economist with the Colorado Division of Housing.

“There was so much refi and sales activity during the first half of the year though, that 2013 ended up being a bigger year than 2012 overall,” he said.

Trends in release activity were not uniform across the state, although 20 of the 21 counties surveyed for the study reported decreases in release activity from the fourth quarter of 2012 to the same period of 2013.

The largest decreases were reported in Boulder and Mesa counties where release activity decreased 48.1 percent and 49.1 percent, respectively. The only increase for the period was in Alamosa County where releases rose 20.9 percent, and the smallest decrease was found in Jefferson County where releases fell 7.0 percent.

Adjusted for the number of existing housing units in each county, the counties with the highest rates of release activity were Summit, Douglas, and Jefferson counties. The counties with the least activity were Fremont, Pueblo and Delta counties.

“We see a similar pattern here to what we see with many other housing indicators,” McMaken said. “Metro Denver and northern Colorado’s high release activity reflect a relatively high demand for real estate while other areas, such as Pueblo and Grand Junction, are showing less activity.”

Totals for releases of deeds of trust are collected quarterly by the Colorado Division of Housing.

This report tracks releases of deeds of trust as reported by public trustees in Colorado. The report includes 21 counties which are chosen based on population size and to ensure that as many regions of the state as possible are represented. More than 90 percent of all occupied households in Colorado are within the twenty-one counties chosen.

A deed of trust is similar to a mortgage and is a lien on real property to secure payment of an indebtedness.

The deed of trust contains a grant of the property to the public trustee for the benefit of the holder. The deed of trust is released when the debt is paid in full.

Have a story idea or real estate tip? Contact John Rebchook at is sponsored by Universal Lending, Land Title Guarantee and 8z Real Estate. To read more articles by John Rebchook, subscribe to the Colorado Real Estate Journal.




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John Rebchook

John Rebchook has more than 30 years of experience in writing and communications. As the Real Estate Editor for the Rocky Mountain News, he wrote about residential and commercial real estate for 26 years. He has won numerous awards for business stories and columns that he wrote, both as an individual and part of teams. In addition to real estate, he also covered economic development, banking and financing, the airlines, and cable TV for the Rocky. In addition, he was one of the original freelance writers for, covering commercial real estate for the Internet publication.

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