Despite severe weather conditions nationwide, business was strong at the two largest independent mortgage banks in January.
North American Mortgage Co., Santa Rosa, Calif., reported that loan applications jumped 144% in January over the year-earlier level and rose 20% over December.
"Our January results give us an excellent start to 1996, especially considering the severe weather conditions endured by much of the nation during the month," said president Terrance G. Hodel.
North American's servicing portfolio grew 5% from January 1995 to $14.6 billion. The company has recently been selling most of its servicing to avoid volatility problems stemming from changes in interest rates. The servicing portfolio had a weighted average coupon of 7.72% at Jan. 31, with a delinquency rate, including foreclosures, of 3.11%.
The servicing portfolio at Countrywide Credit Industries Inc., Pasadena, Calif., increased 21% in January to $136 billion. Production at the lender went up 16% over December, to $223 million. The portfolio had a weighted average coupon of 7.8% at the end of January 1996, compared with 7.5% at the end of January 1995.
Countrywide remains the largest servicer in the country pending the completion of the merger by Chase Manhattan Bank and Chemical Bank and the acquisition of most assets of Prudential Home Mortgage by Norwest Mortgage Co. These deals could push Countrywide to No. 3.
"Our retail-oriented consumer markets division was the key driver of this growth, with an outstanding month-to-month increase in applications of 48%," said Angelo R. Mozilo, vice chairman. Countrywide's pipeline also increased to $4.8 billion, up 10% over December.
Mr. Mozilo reported that "Countrywide's production sector generated average daily applications of $223 million in January, an increase of 16% over December."
Countrywide and North American appear to have been spared the worst impact of the blizzard.
North American is a leading residential lender in California, Texas, Hawaii, and Colorado, as well as blizzard-smitten Maryland and Virginia.
Countrywide is a national lender but has major concentrations in the West. lt said it achieved its results in the face of normally adverse seasonal factors throughout its markets as well as the Eastern blizzard.
