Countrywide Financial Corp.’s mortgage loan fundings for June were $42 billion, down 11 percent from a year ago, the company announced today.

Second-quarter-2006 funding volume totaled $117 billion, a decline of 3 percent from the same period last year. But the Calabasas, Calif.-based company said year-to-date loan fundings are still up 4 percent from last year at $220 billion.

Monthly purchase volume was $21 billion, a 12 percent drop from the $24 billion reported for June 2005. Purchase activity for the second quarter of 2006 totaled $55 billion, down 9 percent from the same year-ago period. Year-to-date purchase activity is essentially unchanged at $102 billion.

Adjustable-rate loan fundings for June were $20 billion, a 23 percent decline from June 2005, and bringing adjustable-rate production for the second quarter to $57 billion, down 16 percent from last year. Year-to-date adjustable-rate volume now stands at $108 billion, a decline of 6 percent from last year.

Home equity loan fundings for June were up 11 percent over June 2005 to $4.3 billion and home equity activity for the second quarter totaled $12 billion, a 13 percent increase from the same period last year. At $24 billion, year-to-date home equity funding is 19 percent higher than last year.

Nonprime loan fundings in June were $4.1 billion, compared with $4.2 billion last June. Nonprime activity for the second quarter reached $11 billion, a 7 percent increase from the same year-ago period. Year-to-date nonprime loan funding volume is essentially unchanged from last year at $20 billion.

At $6.3 billion, consolidated pay-option loan fundings for the month were off 34 percent from the $9.5 billion reported last June. Second-quarter pay-option fundings were down 24 percent from last year’s numbers, at $19 billion. Year-to-date pay-option fundings were $39 billion, a 5 percent decline from the $41 billion total from the same period in 2005. (The mortgage loan funding categories are not mutually exclusive and are not intended to total 100 percent of fundings).

Average daily mortgage loan application activity in June was $2.7 billion, down 10 percent from last year, while the mortgage loan pipeline of $65 billion at June 30, 2006, represented a decline of 16 percent from June 30, 2005.

The mortgage loan servicing portfolio totaled $1.2 trillion at June 30, 2006, an increase of $232 billion, or 24 percent, from June 30, 2005.

“Countrywide’s mortgage loan production results for the month of June and the second quarter of 2006 reflected the year-over-year slowdown in activity across the industry,” said Stanford L. Kurland, president and chief operating officer. “While the company’s total mortgage loan fundings for the second quarter of 2006 declined by 3 percent year-over-year, they were up 13 percent from the first quarter of 2006, reflecting seasonal improvement. This compared positively to the industry, where industry origination volume for the second quarter of 2006 was estimated by various industry sources to decline, on average, by approximately 13 percent year-over-year.”

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.

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