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| U.S. nonprime mortgage production has recently tumbled by nearly a quarter, a new analysis indicates.
First quarter 2007 nonprime originations, including subprime, Alt-A and home equity loans, declined 24.1 percent from the fourth quarter 2006, according to an analysis of earnings statements, SEC filings and company announcements by MortgageDaily.com. The analysis included data from 11 companies that funded approximately $89.6 billion during the first quarter. Compared to $108.9 billion in the first quarter 2006 for the group of companies analyzed, nonprime volume was down 18 percent during the latest quarter, the data indicate. First quarter 2007 production for New Century Financial Corp. was estimated based on two full months of originations and a 40 percent decline from the prior period. WMC Mortgage’s first quarter 2006 volume was estimated using the reported annual total, the reported fourth quarter 2006 figures, and an equal distribution of the remaining three quarters. The decline in nonprime numbers starkly contrasts increased first quarter conforming production at companies like American Home Mortgage Investment Corp., JPMorgan Chase & Co. and Citigroup Inc. |
(in billions)
|
Company
|
Q1 2007
|
Q4 2006
|
Q1 2006
|
| Accredited Home Lenders Holding Co. |
$1.80
|
$3.90
|
$3.60
|
| Bank of America |
$19.7
|
$20.40
|
$18.60
|
| Countrywide Financial Corp. |
$18.40
|
$20.10
|
$20.20
|
| Downey Financial Corp. |
$1.30
|
$1.33
|
$2.80
|
| Impac Mortgage Holdings Inc. |
$2.20
|
$4.20
|
$2.10
|
| IndyMac Bancorp Inc. |
$21.20
|
$23.30
|
$17.30
|
| New Century Financial Corp.* |
$5.91
|
$14.30
|
$13.40
|
| NovaStar Financial Inc. |
$1.40
|
$2.60
|
$1.80
|
| Residential Capital Corp. |
$3.30
|
$6.90
|
$9.10
|
| Wells Fargo Financial |
$11.00
|
$12.00
|
$12.00
|
| WMCÂ Mortgage** |
$3.40
|
$9.00
|
$8.00
|
|
TOTAL
|
$89.61
|
$118.03
|
$108.90
|
