Bucking the recent mortgage production trend, quarterly originations slipped at Downey Financial Corp.
Single-family originations of $3.6 billion trimmed down from second quarter's $4.0 billion and from the year-ago third quarter's $4.3 billion, according to the company's earnings reports.
The production decline at Downey contrasts solid production gains at major lenders such as Bank of America, JPMorgan Chase & Co. and CitiMortgage.
Newport Beach, Calif.-based Downey serviced $11.4 billion in loans for others, the report said. The company had $14.1 billion in residential loans held for investment -- most of which was reportedly Alt-A (97%) as of the end of the quarter.
Accumulated negative amortization was $99 million on about $13 billion in mortgages that are subject to negative amortization, according to the announcement.
The delinquency rate of the portfolio was reported at 0.30%.