Defying industry trends, the third quarter shined for an Oakland, Calif.-based financial corporation as adjustable rate mortgages helped loan volume peak.
Golden West Financial Corp. reported third quarter loan originations at a record $10.1 billion, increasing from $8.0 billion in the second quarter. In the third quarter of 2002, originations totaled $6.7 billion.
Golden West, parent of World Savings Bank, achieved its record production amidst report after report of falling originations at the country's largest mortgage lenders.
Year-to-date originations increased 32% from the third quarter last year to $25.1 billion, Golden West reported.
Adjustable-rate loans, which the company says are its primary product, reportedly accounted over 90% of the third quarter's new lending and year-to-date volume.
According to the company's report, third quarter loan sales of $1.1 billion increased from the prior quarter's $0.9 billion and tripled from $0.3 billion a year ago.
A Golden West executive said in a statement that its large mortgage portfolio, which is the company's primary earning asset, helped third quarter net income break a record reported at $282.9 million. In the same quarter last year, net income totaled $244.5 million.