Countrywide Financial Corp. managed to make $45 billion in mortgage loans in June — a 4 percent increase over the same month last year, despite “increasingly challenging” market conditions, the company said.

Although Countrywide made significant cutbacks in funding of subprime and adjustable-rate mortgages, delinquencies and foreclosures are up sharply from last year. Foreclosures pending as a percentage of unpaid principle balance have more than doubled in the last 12 months, to .96 percent, the company said. That compares with .45 percent in June 2006.

Delinquencies as a percentage of unpaid principal balance stood at 4.77 percent, compared with 3.4 percent last year.

“The housing market continues to soften, and delinquencies and defaults continue to rise,” said David Sambol, Countrywide president and chief operating officer, in a statement accompanying the release of numbers for June. “Additionally, interest rates, price competition in the residential lending markets and secondary market volatility have all increased. However, Countrywide’s residential funding volume in June was strong, driven primarily by seasonal purchase activity and higher application volumes in preceding months.”

Countrywide made just $1.8 billion in subprime loans in June, less than half the $4.1 billion total a year ago, and cut ARM funding by 40 percent to $12.6 billion. Home equity funding for the month was also down 33 percent from a year ago, to $3.7 billion.

For the year to date, subprime loan funding totaled $13.6 billion, down 33.4 percent, while ARM funding was down 32.5 percent to $75.6 billion. Home equity funding for the year so far was $21.1 billion, down 16.3 percent.

Countrywide boosted funding of government backed loans by 90.1 percent in June compared to a year ago, to $2.2 billion. For the year to date, government fundings were up 49 percent to $9.2 billion.

Purchase loans of all types for June were down 1.6 percent from a year ago, to $20.7 billion, while nonpurchase loans rose by 9.7 percent, to $24.5 billion.

In an attempt to take market share from its competitors, the Calabasas, Calif.-based lender has been on a hiring spree. The workforce in loan originations stood at 33,796 in June — an increase of 830 positions from May, and 1,281 positions from a year ago. The company’s total payroll was up 7.1 percent, to 60,427.

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 Las Vegas is back and there are only a few presale tickets left! Register today before they're gone.REGISTER×
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