Amidst an overall drop in mortgage loan production, Countrywide Financial Corp. reported -- again -- record purchase, subprime and ARM fundings.
The Calabasas, Calif.-headquartered lender reported May loan fundings totaled $31.8 billion, down from the previous month's $35.8 billion and 20% below the volume a year ago.
"Despite the continued rise in rates and decline in refinance activity," operational results were solid "as the overall market shifts towards purchase mortgages and adjustable-rate mortgage products," Stanford Kurland, the company's chief operating officer, said in the announcement.
At $15 billion, purchase activity rose to a record for the second consecutive month, and non-purchase fundings fell from last month to $17.2 billion, according to the report.
Adjustable-rate mortgages comprised almost half -- 49% -- of fundings as they totaled $16 billion, Countrywide said, adding that it was named the largest lender of this type of mortgage during the first quarter. Meanwhile, home equity volume was over $2 billion and subprime volume was $3 billion. Each category reportedly reached new monthly highs for the fourth month in a row.
Correspondent fundings made up about $12 billion of the latest volume, consumer market fundings added nearly $10 billion and wholesale loan volume accounted for just over $6 billion, Countrywide said. The remaining portion was comprised of Capital Markets and Treasury Bank fundings.
Kurland said "strong production efforts have led to substantial growth in the servicing portfolio," -- growing at an average rate of $600 million each business day since the beginning of the year, it had a balance of $706.9 billion at May's end, which is 32% greater than a year ago. However, May delinquency jumped 30 basis points from the previous month to 3.49%. Foreclosures pending edged down 2 basis points to 0.36%, the report said.
Countrywide was recently named in a New Jersey class action lawsuit, which accused the company of illegally charging consumers fees required for closing.