Countrywide Financial Corp.'s monthly volume decreased, but its pipeline of mortgages suggests fundings will improve.
Loan originations were $37.1 billion last month, falling 11 percent from December but 13 percent higher than in January 2006, the Calabasas, Calif.-based lender announced today.
The monthly decline was "in part a reflection of normal seasonal effects," Countrywide said.
Purchase money loans accounted for $13.3 billion of January's fundings, while adjustable-rate mortgage loans represented $13.7 billion, of which $2.7 billion had pay-option terms, according to the announcement.
Subprime loans reportedly amounted to $2.9 billion and home equity loan fundings edged up from December to $3.6 billion.
The correspondent channel delivered about 44 percent of January's production, retail loans added 34 percent, brokers originated 19 percent, and the rest consisted of purchases from banking operations and capital markets, the lender reported.
The pipeline of loans in process ended January at $58.7 billion, about $1.5 billion better than a month earlier.
As of Jan. 31, Countrywide said it serviced close to 8.3 million loans that pushed the portfolio's balance to $1.317 trillion.