|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.
The Calabasas, Calif.-headquartered lender reported May loan fundings totaled $31.8 billion, down from the previous month’s $35.8 billion and 20% below the volume a year ago.
“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.
7 Refinance Strategies
Refinance to a lower interest rate: If interest rates have dropped since you took out your original mortgage, refinancing to a lower rate can help you save money on your monthly payments and reduce the overall cost of your loan. Refinance to a shorter loan term:...