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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (2011)	11/10/2003 9:13:00 AM
From: russwinter	Read Replies (2) \| Respond to of 110194

Huge increases in subprime and ARM lending (38% of total fundings) at CFC, with business (fundings and pipeline down). CFC averaged 42m in fundings a month in the 3rd qt, 29m in Oct.: Press Release Source: Countrywide Financial Corporation Countrywide Reports October Operational Data Monday November 10, 8:02 am ET - Servicing Portfolio Sets New Benchmark at $621 Billion - - Purchase Fundings of $12 Billion Drive Year-to-Date Volume Over $100 Billion - - ARM Fundings Reach $11 Billion - CALABASAS, Calif., Nov. 10 /PRNewswire-FirstCall/ -- Countrywide Financial Corporation (NYSE: CFC - News), a diversified financial services provider, released operational data for the month ended October 31, 2003. Operational highlights for October included the following: -- The servicing portfolio reached a new milestone of $621 billion, an increase of $169 billion since the beginning of the year, and 47 percent higher than October 2002. -- As expected, loan fundings for the month declined from the prior month to $29 billion. Production volume for the ten-months year-to-date totaled $388 billion and was $136 billion more than total production for all of calendar 2002. -- Monthly purchase fundings of $12 billion were 32 percent greater than October 2002, and accounted for 43 percent of total fundings. Year-to-date purchase volume of $108 billion has exceeded the $86 billion produced for all of 2002 by 25 percent. -- Demand for less interest-rate sensitive products -- adjustable-rate, home equity and subprime loans -- continues to be strong. -- Adjustable-rate loan production was $11 billion this month, 183 percent greater than October 2002. ARM volume year-to-date totaled $74 billion. -- Home equity loan fundings were $1.8 billion, 56 percent higher than October 2002, and totaled $15 billion year-to-date. -- Subprime loan production was $2.4 billion for the month, up 142 percent over the prior year, and totaled $16 billion year-to-date. -- Average daily application volume decreased slightly over last month to $1.6 billion. The mortgage pipeline continued to decline, as expected, but remained strong at $43 billion. -- Corresponding with lower production levels, securities trading volume at Countrywide Securities Corporation, a registered broker-dealer, declined to $208 billion for the month. Nonetheless, year-to-date trading volume reached $2.5 trillion, exceeding full year 2002 results by 25 percent. -- Total assets at Countrywide Bank, a division of Treasury Bank, NA, rose to $17 billion, an increase of 4 percent from last month and 242 percent more than October 2002. -- Net earned premiums at the Insurance carriers -- Balboa Life & Casualty and Balboa Reinsurance -- rose 27 percent over last year to $70 million. Year-to-date net earned premiums were $601 million, surpassing full year 2002 net earned premiums of $562 million. -- Sub-servicing volume at Global Home Loans now stands at $100 billion, up 67 percent from $60 billion in October 2002. "Countrywide's proficiency and agility in responding quickly to changes in the market were demonstrated again this month," said Stanford L. Kurland, Chief Operating Officer. "Our less interest-rate sensitive production gained steam, as purchase production and adjustable-rate mortgages, home equity and subprime loans have continued to exhibit substantial year-over-year growth. All production efforts remain well-supported by our variable cost structure, and the commission-based sales force is expected to help boost our purchase market share. Despite a continued slowing of refinance activity in the market place, our Production sector performance remains strong. Meanwhile, our servicing portfolio has now surpassed the $620 billion level, and provides a substantial platform for servicing earnings going forward. For the month, fundings exceeded prepayments by $15 billion.