Production Falls at World
January loans closed at $2.3 billion
March 3, 2003
By MortgageDaily.com staff
Golden West Financial Corporation experienced a slight decrease in mortgage loan production during the month of January.
The Oakland-Calif.-based lender originated $2.3 billion in loans, a dip from December’s almost $2.7 billion production. The January number is a 36% increase from the same time last year, however.
Refinancings represented 72% of January’s production, compared with 69% in December and 65% in January 2002.
Adjustable-rate mortgages (ARMs) made up 90% of production in January, a step up from the previous month’s 89% and last year’s 87%. Last week, the Mortgage Bankers Association of America reported that ARMs only made up 13% of loan applications for lenders nationwide, a stark contrast to Golden West’s activity. In December, CEO Marion O. Sandler said maintaining a high ARM percentage was important for Golden West.
“These variable rate loans help limit the exposure of the company’s earnings to swings in interest rates,” he said.
At Dec. 31, Golden West’s servicing portfolio had reached $5.4 billion, a spokesman said. Its total assets reached $69.7 billion in January.
Shares of Golden West closed at $72.40 Friday, according to CBSMarketwatch.com. Golden West is the parent of World Savings Bank.
