Industry News

Refis, HELOCs boost Countrywide’s loan production

Lender cuts back on subprime and 'exotic' loans

A boom in nonpurchase loans helped Countrywide Financial Corp. boost residential mortgage loan funding in May to $44 billion, a 15 percent increase from last year. Purchase loan volume for the year to date is down, but Countrywide has more than made up for that decline with a sharp rise in nonpurchase loans, including refinance and home equity loans. At $18.6 billion, Countrywide's funding of purchase loans in May was up slightly from last year's $18.3 billion mark. For the year to date, purchase loans funded totaled $77.7 billion, down slightly from $82 billion at this time 2006. Nonpurchase loans totaled $25.8 billion in May, up from $20.4 billion in the same month last year. Year-to-date nonpurchase loans totaled $122.2 billion, up from $98.6 billion in 2006. Countrywide also reported that foreclosures pending, as a percentage of total number of loans serviced, totaled .71 percent at the end of May, up from .47 percent at the same time last year. Foreclosures as a percentage of unp...