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 conditions.” Mozilo said purchase volume fell as a result of continued softness in the housing market, as well as seasonality.
“Refinance activity declined as well, but falling long-term interest rates during November resulted in an increase in average daily application volume and an ending mortgage loan pipeline of $62 billion, indicative of strong funding volume for the remainder of the year,” Mozilo said in a statement.
Countrywide’s servicing portfolio continues to climb, reaching $1.3 trillion at the end of November, up 17 percent from the same time last year.