Sinking subprime originations dragged down overall production at Countrywide Financial Corp. But a growing pipeline gives cause for a glowing outlook.
Mortgage fundings were $34.4 billion during April, according to a monthly summary released today, off 5% from the prior month and down 4% from the prior year.
Countrywide cited two fewer working days in its announcement.
Just under half the month's production was purchases, the Calabasas, Calif.-based lender reported, while adjustable rate fundings were $19.6 billion.
Home equity loans originated were $3.5 billion, Countrywide said, up slightly from March. Nonprime fundings were reported at $2.9 billion during April, declining 13% from the prior month.
As for future business, the mortgage banking giant said its pipeline climbed to $66 billion at the end of April, "its highest level since July 2003, driven in part by a decline in the 10-year US Treasury yield since March 31, 2005."
In recent days, the 10-year Treasury yield has climbed to 4.288% -- "the highest yield seen since Apr. 27," according to MarketWatch.
Countrywide's $914.5 billion servicing portfolio had a 3.31% delinquency rate, according to the summary, while foreclosures pending were 0.39%.