Countrywide Financial Corp. reversed a three-month production decline but came up short for the quarter. Annual originations, however, met a new milestone.
During the fourth quarter, fundings totaled $133 billion, down $13 billion from the previous quarter, the Calabasas, Calif.-based company reported. A year prior, quarterly volume was $95 billion.
For all of 2005, Countrywide said residential production was $490.9 billion, significantly higher than the $363.0 billion originated during 2004 and "higher than any number previously reported by any residential lender in the U.S."
The correspondent lending division accounted for 40% of last year's production, the mortgage behemoth said, while consumer markets were responsible for 29% and wholesale lending represented just over 16%.
Refinance and purchase business each accounted for about half of Countrywide's total 2005 volume, the report said. Adjustable rate fundings also added up to about half of annual activity.
Nonprime fundings were $44.6 billion during 2005, Countrywide reported, while home equity production was $42.7 billion.
"While production margins declined in 2005 compared to levels seen earlier in the refinance boom, Countrywide established numerous funding milestones during the year," said Stanford L. Kurland, president, in the statement.
December monthly originations reached $44.1 billion, according to the announcement, up from $42.9 billion the prior month. Fundings were down each of the prior three months.
The servicing portfolio reportedly ended the year at nearly 7.5 million loans for $1.1 trillion.
Countrywide said pay-option loans were around 18% of December's activity, much higher than the 5 percent for the whole year.