Driven by strength in loans originated for its portfolio, Downey Financial Corp. reversed a string of monthly declines.
August residential loan production was $0.3 billion, the Newport Beach, Calif.-based company announced today. Fundings climbed from $0.2 billion the prior month but tumbled from $0.6 billion a year earlier.
Fundings had been on the decline most of this year, the operations data indicated.
Last month's activity included $0.172 billion in loans originated for its investment portfolio, soaring from $0.095 billion during July, and $0.072 billion in loans originated for sale, dropping from $0.109 billion, the Alt-A lender reported. Other originations totaled $0.008 billion in August.
The company, which operates 172 California and Arizona branches, said it serviced $5.7 billion in loans with a weighted average interest rate of 5.81 percent for others as of Aug. 31. Loans held for investment aggregated $11.7 billion.
Nonperforming loans were reported at 1.96 percent of total assets on Aug. 31, climbing from 1.77 percent on July 31, the report indicated.