Countrywide Financial (CFC) said its mortgage loan fundings in October plunged 48% from the same month a year earlier to $22 billion, and subprime loans were virtually nonexistent.
Average daily mortgage loan application activity for the month was $1.8 billion, a 34% year-over-year decrease. The mortgage loan pipeline was $41 billion at Oct. 31, $20 billion below last year.
The mortgage loan-servicing portfolio continued to grow, reaching $1.47 trillion at the end of the month, up 16% from the year earlier. Banking operations' assets rose to $106 billion from $83 billion.
"October's operating results continue to be indicative of current market trends," said David Sambol, Countrywide's president and chief operating officer. "Total fundings were down substantially on a year-over-year basis, but were up 4% from the prior month, and production funded through the Bank has now surpassed 90% of total fundings. Average daily applications and the mortgage loan pipeline were essentially flat from the prior month. At $42 million, subprime fundings for the month of October 2007 were just 0.2% of total mortgage loan fundings."The California-based lender said it continues "to work diligently toward mitigating the consequences our borrowers are facing" as a result of the meltdown in the mortgage arena.