Countrywide Credit Industries Inc. said it funded $4.4 billion of mortgage loans in October and its loan pipeline totaled $8.2 billion at Oct. 31.
Vice chairman Angelo R. Mozilo said overall loan funding was up 56% from the same month last year due to strong demand. "Average daily applications grew 82% over last October to the new record of $335 million," he said.
"Higher application activity fueled growth in the pipeline of loans in process to $8.2 billion, an increase of 88%" from the year before, he added.
The company's servicing portfolio reached $173 billion during the month. "Lower interest rates increased prepayments as expected, but the servicing hedge continues to mitigate the impact of rate volatility on earnings," Mr. Mozilo said.
Countrywide's fixed-rate loan production amounted to $3.4 billion, or 77% of total production, up from $2 billion, or 71% of total production, in October 1996.
Purchase mortgage activity was $2.7 billion, up from $2.1 billion the year before. Refinancings were 40% of total fundings last month, up from 25% last year.
The company funded $141 million of home equity loans, up from $60 million last year. Subprime loan funding totaled $130 million, up from $97 million in October 1996.