Industry News

Countrywide’s home loan production dwindles

Pay-option, ARM funding down sharply from last year

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Countrywide Financial Corp. funded $37.8 billion in mortgage loans in November, an 11 percent decline from the same month last year and 8 percent less than last month. Although funding of all types of mortgage loans declined, the greatest difference between this year and last was in pay-option loans. At $3.2 billion, Countrywide's pay-option loan production was down nearly 60 percent for the month, and year-to-date pay-option fundings are down 29 percent to $62 billion. Purchase, home equity, subprime and adjustable-rate loans were also down for the month, with the greatest decline in ARM fundings. The $13.8 billion in ARM fundings for November represented a 34 percent decline from the same month last year. Purchase volume declined 18 percent to $15.8 billion, subprime loans were off 22 percent to $3.06 billion, and home equity funding was down 13 percent to $3.2 billion. Countrywide Chief Executive Officer Angelo R. Mozilo said the November results reflect "transitional market c...