|Countrywide Blows Past Prior Records
Measure of future activity greatest ever
November 11, 2002
By CHRISTY ROBINSON
|Countrywide Credit Industries, Inc. reported another record breaking month with its funding volume, pipeline, and servicing portfolio.
Total loan fundings for October reached an all-time high of $34.7 billion, a 37% increase from September’s $25.3 billion and more than double the fundings during Oct. 2001. Year-to-date (YTD) fundings total $185 billion.
“Countrywide continues to capitalize on opportunities within the growing purchase mortgage business which is less sensitive to interest rate movements,” chief operating officer Stanford L. Kurland said.
Purchase fundings reached $9.4 billion, 13% over the prior record of $8.3 set in August and 21% over September’s $7.8 billion. During the same period last year, the company reported $5.1 billion in purchase loans, an 84% difference from the new record set this month. YTD, purchase fundings have reached $70 billion.
The Federal Open Market Committee announced a rate cut Wednesday that some analysts say may stimulate the industry, if only in the adjustable rate mortgage department.
“Given our pipeline activity and the Federal Reserve’s recent decision to cut interest rates by 50 basis points, we expect continued robust funding levels in the near term,” Kurland said.
The lending giant reported a record $52 billion in its mortgage loan pipeline, a measure of upcoming fundings. This figure represents only a 1.4% increase from the previous record in September, but it’s 86% more in the pipe than last year.
The company’s servicing portfolio hit a record $422 billion in October, according to the report.
“While our mortgage banking business continues to set new records, buoyed by historically low interest rates and our strategically designed macro-hedge strategy, we are equally optimistic about the results achieved in our diversified businesses,” Kurland said.
According to CBS.MarketWatch.com, Countrywide was down $0.34 from yesterday’s close to $50.52 near noon trading.
Christy Robinson is the editor of MortgageDaily.com. She received a bachelor’s degree in news-editorial journalism from The University of Texas at Arlington. Her work has previously been published in The Dallas Morning News.
email Christy at: ChristyRobinson@MortgageDaily.com
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