|Non-Refi Business Continues to Sizzle at Countrywide
May production $31.8 billion
June 8, 2004
By MortgageDaily.com staff
|Amidst an overall drop in mortgage loan production, Countrywide Financial Corp. reported — again — record purchase, subprime and ARM fundings.
“Despite the continued rise in rates and decline in refinance activity,” operational results were solid “as the overall market shifts towards purchase mortgages and adjustable-rate mortgage products,” Stanford Kurland, the company’s chief operating officer, said in the announcement.
At $15 billion, purchase activity rose to a record for the second consecutive month, and non-purchase fundings fell from last month to $17.2 billion, according to the report.
Adjustable-rate mortgages comprised almost half — 49% — of fundings as they totaled $16 billion, Countrywide said, adding that it was named the largest lender of this type of mortgage during the first quarter. Meanwhile, home equity volume was over $2 billion and subprime volume was $3 billion. Each category reportedly reached new monthly highs for the fourth month in a row.
Correspondent fundings made up about $12 billion of the latest volume, consumer market fundings added nearly $10 billion and wholesale loan volume accounted for just over $6 billion, Countrywide said. The remaining portion was comprised of Capital Markets and Treasury Bank fundings.
Kurland said “strong production efforts have led to substantial growth in the servicing portfolio,” — growing at an average rate of $600 million each business day since the beginning of the year, it had a balance of $706.9 billion at May’s end, which is 32% greater than a year ago. However, May delinquency jumped 30 basis points from the previous month to 3.49%. Foreclosures pending edged down 2 basis points to 0.36%, the report said.
Countrywide was recently named in a New Jersey class action lawsuit, which accused the company of illegally charging consumers fees required for closing.
So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...