Tuesday, November 13, 2007

Countrywide’s Mortgage Volume is Down 48% in October

It is pretty clear from the comments below that Countrywide is not willing to hold anything in portfolio. This is contributing significantly to their decline in volume. Also look at the differences in the mix of products from a year ago. From CNN.Money:

Countrywide Financial Corp. said total mortgage loan origination volume in October fell 48 percent due to continued weakening of the mortgage market and the company's decision to cut down on its subprime lending operations, the company said Tuesday.

Countrywide originated $21.96 billion in mortgages in October, down from the $41.9 billion originated during the same month a year ago. But Countrywide's October originations increased 4 percent from September origination volume.

The nation's largest mortgage lender has all but eliminated subprime mortgages -- loans given to customers with poor credit history -- from its product menu. Countrywide originated just $42 million in subprime mortgages in October, 99 percent less than the $3.25 billion originated during the same month a year ago.

Countrywide is also significantly curtailing its origination of home equity products, which have also increasingly gone into default in recent months. Countrywide originated $1.36 billion in home equity products in October, 68 percent less than the $4.29 billion originated during the comparable period last year.

Countrywide had about $41 billion in its mortgage pipeline, as of Oct. 31, down from $61 billion at the same time last year.

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