WaMu's mortgage volume drops

Washington Mutual this week reported first quarter earnings of $1.05 billion, or $1.18 per diluted share, up 10 percent on a per share basis from the same period a year ago.

Growth the company's retail banking and financial services business, whose net income increased by 23 percent, led the results.

Total loan volume, however, was down to $62.2 billion, compared with approximately $109 billion in the first quarter of 2003. Home loan volume of $50.5 billion was down $49.5 billion from a year ago.

Washington Mutual said those drops were partially offset by the company's business model and strength in generating adjustable-rate mortgages. During the first quarter of 2004, ARMs represented 53 percent of the company's home loan origination volume, compared with 27 percent in the first quarter of 2003.

Home equity loans and lines of credit volume was $8.42 billion, up 62 percent from the first quarter of 2003.

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