| Golden West Refi’s Still Going Strong, Driven by ARMs
$9.4 billion 1st quarter production reported April 22, 2004 By MortgageDaily.com staff |
| While the refinance wave has long since subsided for most of the industry, the parent of World Savings reported strong refinance production in its most recent quarter. The company attributes the strength to the success of its ARM programs.
According to its latest earnings statement, Golden West Financial Corp. originated $9.4 billion during the first quarter, down from $10.9 billion in the previous quarter. The company reported $6.9 billion originated in the first quarter of 2003. In discussing year-over-year quarterly production results, Golden West CEO Herbert M. Sandler said in a statement that the 35% increase was “in large part because of the desirability of our primary product, the adjustable rate mortgage or ARM. ARMs were attractive because the rates on these loans were even less than the more traditional fixed-rate mortgage.” First quarter volume was 98% comprised of adjustable-rate loans, unchanged from the previous quarter and up from 91% a year ago, the Oakland, Calif.-based financial institution said. Meanwhile, refinances were reportedly 72% of the latest loan originations, up from 70% during the previous quarter and unchanged from a year earlier. The company reported $83 billion in loans receivable and mortgage backed securities. Loans serviced for others totaled $5.4 billion. Golden West — the holding company of World Savings Bank — announced record first quarter earnings of $299.7 million. |
