Despite a drastic cutback in pay-option loans, Countrywide Financial Corp. saw a 13 percent increase in loan fundings in January compared to the same month last year, to $37.1 billion, the company announced today.

Countrywide, which funded $6.9 billion in pay-option loans in January 2006, cut back production in that category by 61 percent, to $2.7 billion. Adjustable-rate mortgages funded during the month totaled $13.7 billion, down 19 percent from a year ago. Subprime loan funding was down only slightly to $2.9 billion, compared with $3 billion in January 2006.

The growth in total mortgage loan fundings was driven by a sharp increase in refinancing, with a 30 percent increase in nonpurchase loans to $23.8 billion compared to a year ago.

Total loan fundings in January were down 11 percent from December 2006, but Countrywide’s mortgage loan-servicing portfolio continued to grow, surpassing $1.3 trillion at Jan. 31, 2007, a 17 percent increase from 12 months ago.

Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
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