Monthly and quarterly volume thinned at Countrywide Financial Corp. And while delinquency jumped, the mortgage banking concern saw its servicing portfolio thicken closer to the thirteen digit threshold.
The California company announced September fundings of nearly $31.1 billion, just a nudge below August's total. Volume is down 6% from a year ago.
Third quarter production of $92 billion declined 8% from the previous quarter and 27% year over year.
"Interest rate volatility was the dominant theme throughout this quarter," said Stanford L. Kurland, Countrywide president and chief operating officer, in the announcement.
Purchases accounted for about 56% of September's volume, the Calabasas-based lender said.
September adjustable-rate loan fundings reached a record high of $21 billion, home equity originations climbed for the eighth consecutive month to a new record of over $3 billion, while subprime production slipped below $4 billion, according to the announcement.
Correspondent originations accounted for nearly $11 billion of the latest monthly total, followed by consumer market fundings of $9 billion and wholesale volume of nearly $6 billion, Countrywide said. Capital Markets and Treasury Bank production made up the remaining portion.
The servicing portfolio of $786 billion reportedly grew 8% from the second quarter and about 30% from the third quarter last year. The portfolio delinquency ended in September at 3.73% -- while it climbed 30 basis points (BPS) quarter to quarter, it jumped 16 BPS from August. The percentage of foreclosures pending edged down during the third quarter to 0.35%.