Countrywide mortgage loan production sank 48 percent in October
By ALEX VEIGA AP Business Writer
Article Launched: 11/13/2007 10:18:41 AM PST


LOS ANGELES—Countrywide Financial Corp. said Tuesday its level of home loan production fell by nearly half last month compared to the same month last year, while the percentage of delinquent loans rose as the mortgage lender continued to grapple with the fallout from the U.S. housing slump.
Countrywide, the nation's largest mortgage lender, generated $21.9 billion in mortgage loan fundings in October, down 48 percent from $41.8 billion the year-ago month.

Total fundings rose 4 percent from September, the company said.

In all, the lender originated 117,430 home loans during the month, down from 230,196 in October 2006.

Following the collapse of the subprime mortgage market Countrywide dramatically cut back on originating such loans, which are typically made to borrowers with past credit problems.

The company's subprime mortgage fundings declined nearly 99 percent—the biggest decline from last year. They totaled $42 million last month, down from $3.25 billion in the year-ago month.

Home equity loan originations totaled $1.35 billion, down 68 percent from $4.29 billion in October 2006.

Countrywide's slate of adjustable rate mortgages—among the most popular type of loan in recent years—also declined. The company funded $3.09 billion in adjustable rate mortgages, down about 80 percent from $16.25 billion the same time last year.

In all, Calabasas, Calif.-based Countrywide had about $41 billion in its

mortgage pipeline as of Oct. 31, down from $61 billion in the year-ago month.
As of Oct. 31, the company's mortgage loan servicing portfolio was valued at $1.47 trillion, up 16 percent from October last year.

The company said some 5.89 percent of the loans in its servicing portfolio were delinquent last month, up from 4.43 in the year-ago period. About 0.89 percent of the mortgage loans were pending foreclosure, up from 0.56 percent.

Countrywide noted that more than 90 percent of total loan originations, which includes commercial real estate lending, were funded through its banking subsidiary, Countrywide Bank.

Assets at the bank, which experienced a rash of withdrawals in August as some customers feared their deposits might be lost if the mortgage lender went under, stood at $106 billion at the end of last month, up from $83 billion.