Industry News

Countrywide mortgage production drops 22%

September posts huge decline in adjustable-rate loans

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Countrywide Financial Corp. loaned more than twice as much money using pay-option adjustable-rate mortgage loans last September as in the same month this year, helping push overall mortgage production for the month down 22 percent from the same period last year. Countrywide today reported funding $38 billion in mortgage loans of all types in September, down from $49 billion in September 2005. The nation's biggest mortgage lender said pay-option-ARM loan funding for the month was $4.3 billion, a 57 percent decline from the $9.9 billion loaned last September. For the third quarter, pay-option-ARM funding stands at $15 billion, compared with $29 billion a year ago. Year-to-date pay-option fundings were $54 billion, down from $70 billion for the same period last year. Nonprime loan funding for the month also declined to $3.1 billion, compared with $4 billion in September 2005, while home equity loan fundings were flat at $3.8 billion. Countrywide continues to grow its loan servicing por...