Countrywide Financial Corp. today reported a 12 percent drop in mortgage loan fundings in October compared to the same month last year, as activity fell to $41 billion last month.

Despite a boost in activity from September, year-to-date funding volume, at $375 billion, is still 7 percent below the same period last year, the company said.

“October operational results reflect both seasonal and economic mortgage market conditions,” said Angelo R. Mozilo, chairman and chief executive officer. “As a result, purchase activity has started to slow.”

The nation’s largest mortgage lender said pay-option-ARM loan funding for October was $4.3 billion, a drop of 49 percent from the $8.5 billion funded in October 2005. Year-to-date pay-option fundings came in at $58 billion, compared with $79 billion for the same period last year.

Nonprime loan fundings last month also declined from their year-ago level, falling from $3.9 billion to $3.3 billion, while home equity lending volume was flat at $3.6 billion.

The mortgage loan servicing portfolio continued its growth, reaching $1.26 trillion at the end of October, up 18 percent from the same time last year.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Inman Connect Black Friday Sale! Bundle our next two events or secure your 2021 All Access Pass.SEE THE DEALS×
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription