PASADENA, Calif. -- Countrywide Credit Industries Inc. said the company funded $2.1 billion of residential home mortgages in June, down by 52% from the $4.4 billion funded in June 1993.
The June figure is down 9.5% from the $2.3 billion in May 1994.
The company's pipeline of loans in process totaled $4 billion as of June 30, 1994. A year earlier, June 30, 1993, the pipeline was $8.2 billion, and a month earlier, $4.4 billion.
"Our strategic emphasis on penetrating the home purchase market has resulted in these loans' comprising a company record of $1.7 billion, or 77% of our June production," said David S. Loeb, chairman. Adjustable-rate-loans amounted to 30% of June fundings.
"We have noted the continuation of significant price competition among originators of third-party business, which results in downward pressure on margins for these loans," Mr. Loeb said. "Countrywide is continuing its policy of maintaining acceptable profit margins, resulting in less volume from third-party originations. Because of these reduced volumes, we are continuing to tailor our head count and overhead expenses to match current production levels."
He added that the company's servicing was insulated against high prepayments because prevailing no-cost refinancing rates remain substantially higher than the 7.2% weighted average coupon on the $97 billion portfolio.
Countrywide bought $2.6 billion of servicing in June, Mr. Loeb said.
Prepayments in the company's servicing portfolio totaled $700 million in June and $800 million in May.
