The Foreclosure Report

CFC Charges Ahead With Riskiest Loans

Countrywide Financial is setting records that may come back to haunt the firm. "Mortgage loan fundings at Countrywide Financial continued to climb in September, reaching $49 billion, a 58 percent increase from the same month a year ago. For the third quarter, Countrywide's mortgage loan fundings were a record $146 billion, up 59 percent over last year's third quarter, and year-to-date mortgage loan fundings were $358 billion."

"Adjustable-rate loan fundings for the month were $24 billion, up 14 percent from September 2004. Home equity loan fundings for September advanced 21 percent over last year to $3.8 billion, bringing home equity production for the quarter to $12 billion, which was up 28 percent over last year's third quarter."

"On a consolidated basis, Countrywide funded $9.9 billion in pay-option ARM loans and $8.8 billion in interest-only loans for the month of September 2005. This compares with $2.8 billion and $6.3 billion, respectively, for the same periods a year ago."

"Delinquencies in the servicing portfolio increased 35 basis points from August 2005 to 4.03 percent at the end of September. The increase was caused primarily by customers in areas affected by Hurricane Katrina and seasonal fluctuations, the company said."

posted by Ben Jones @ 9:04 AM