In what appears to be an emerging trend, Countrywide Financial Corp. reported quarterly production soared from the prior period.
Residential mortgage loan fundings were $120 billion during the second quarter, according to an operational data report released today, up 31% from the previous quarter. Countrywide said originations were 21% better than a year ago.
For just June, the Calabasas, Calif.-based giant reported $47 billion in production, way up from $39 billion the prior month. Correspondent originations accounted for $18 billion, while direct volume was $14 billion and wholesale fundings were $7 billion.
Purchase fundings made up $61 billion of second quarter volume, the announcement said, while ARM fundings were $67 billion.
Countrywide reported nonprime fundings during the latest three-month period were $10 billion, edging up from the first quarter. Home equity originations were $11 billion, rising from $9 billion.
The positive production results echo surging second quarter activity reported by IndyMac and New Century.
"The second quarter of 2005 was characterized by falling long-term interest rates which created a robust mortgage origination environment," said Countrywide president Stanford L. Kurland in the announcement. "In support of record quarterly bank asset growth, $15.7 billion in loans produced were retained at the bank rather than sold, compared to $8.5 billion that was retained by the bank last quarter."
The lender said its mortgage pipeline ended the period at $77 billion.
The mortgage servicing portfolio grew to $964 billion, the mortgage banker reported.