Countrywide Financial Corp.‘s mortgage loan fundings for May dipped 0.3 percent from a year ago to $38.6 billion, the company announced today.
The Calabasas, Calif.-based company said year-to-date loan fundings posted an 8 percent gain over the same period in 2005, coming in at $178 billion.
Monthly purchase volume slipped to $18 billion last month, down 10 percent from $20 billion in May 2005. Year-to-date purchase activity totaled $81 billion, a 4 percent increase from last year.
Adjustable-rate loan fundings for the month of May were $20 billion, a decrease of 10 percent from May 2005. Year-to-date adjustable-rate volume was $88 billion, down 2 percent from last year.
Home equity loan fundings for May increased 15 percent year-on-year to $4.2 billion, bringing the year-to-date fundings to $19 billion, which was 20 percent higher than last year.
Nonprime loan fundings in May were $3.8 billion, up 15 percent from $3.3 billion for the year-ago period. Year-to-date nonprime loan fundings were $16 billion, virtually flat with the comparable period last year.
Consolidated pay-option loan fundings for the month were $6.6 billion, compared with $8.3 billion last year. Year-to-date pay-option fundings were $33 billion, an increase of $1 billion from the same period last year.
The mortgage loan-servicing portfolio totaled $1.2 trillion at the end of May, an increase of $242 billion, or 26 percent, from a year ago.
“Countrywide produced strong operational results for May 2006,” said Stanford L. Kurland, president and chief operating officer, in a statement. “Our mortgage loan pipeline at May 31, 2006, stood at $66 billion, suggesting continued near-term strength in production volume…Adjustable-rate fundings declined on a year-over-year basis, reflecting greater consumer demand for fixed-rate mortgages in the current flat yield curve environment.”
Founded in 1969, Countrywide originates, purchases, securitizes, sells, and services prime and nonprime loans; provides loan closing services such as credit reports, appraisals and flood determinations; offers banking services which include depository and home loan products; conducts fixed income securities underwriting and trading activities; provides property, life and casualty insurance; and manages a captive mortgage reinsurance company.