Countrywide Financial mortgage loan production sank 48 percent in October

: Countrywide Financial Corp. said Tuesday its degree of place loan production drop by almost half last calendar calendar month from the same month last year, while the per centum of delinquent loans rose as the mortgage loaner continued to cope with the radioactive dust from the U.S. lodging slump.

Countrywide, the biggest U.S. mortgage lender, generated $21.9 billion (€14.99 billion) in mortgage loan supports in October, down 48 percentage from $41.8 billion (€28.62 billion) the year-ago month.

Total supports rose 4 percentage from September, the company said.

In all, the loaner originated 117,430 place loans during the month, down from 230,196 in October 2006.

Following the collapse of the subprime mortgage marketplace Countrywide dramatically cut back on originating such as loans, which are typically made to borrowers with past recognition problems. Today in Business

The company's subprime mortgage supports posted the greatest diminution from a twelvemonth ago, plummeting almost 99 percent, to $42 million (€28.75 million) last calendar month from $3.25 billion (€2.22 billion).

Home equity loan origins totaled $1.35 billion (€0.92 billion), down 68 percentage from $4.29 billion (€2.94 billion) in October 2006.

Countrywide's slate of adjustable charge per unit mortgages — among the most popular type of loan in recent old age — barbarous almost 80 percent, to $3.09 (€2.12) from $16.25 billion (€11.12 billion) a twelvemonth earlier.

In all, Countrywide had mortgage applications waiting to be processed worth about $41 billion (€28.07 billion) as of Oct. 31, down from $61 billion (€41.76 billion) in the year-ago month.

As of Oct. 31, the company's mortgage loan service portfolio was valued at $1.47 trillion (€1.01 trillion), up 16 percentage from October last year. The company services loans originated by other lenders.

The company said some 5.89 percentage of the loans in its service portfolio were delinquent last month, up from 4.43 in the year-ago period. About 0.89 percentage of the mortgage loans were pending foreclosure, up from 0.56 percent.

Countrywide noted that more than than 90 percentage of entire loan originations, which includes commercial existent estate lending, were funded through its banking subsidiary, Countrywide Bank.

Assets at the bank, which experienced a roseola of backdowns in August as some clients feared their sedimentations might be lost if the mortgage loaner went under, stood at $106 billion (€72.57 billion) at the end of last month, up from $83 billion (€56.82 billion).

Shares of Countrywide rose 53 cents, or 4 percent, to fold at $13.72 Tuesday.

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Third-Quarter Loss at Fannie Mae More Than Doubled

, the place mortgage company, said yesterday that its third-quarter loss more than doubled, to $1.39 billion, as a deepening lodging slack increased mortgage delinquencies. Related

The nett loss was caused by a $2.24 billion diminution in the value of derivative contracts and $1.2 billion in recognition losings among the $2.7 trillion of mortgage assets Fannie Mae have or guarantees, the company said in a filing with the Securities and Exchange Commission.

The head executive, Daniel H. Mudd, said he expected the lodging marketplace to worsen, with the norm terms of places falling 2 percentage this twelvemonth and 4 percentage in 2008.

The third-quarter nett loss amounted to $1.56 a share, and compares with a nett loss of $629 million, or 79 cents a share, in the one-fourth a twelvemonth earlier.

Credit-related losings in the time period surged by $1.6 billion, to $2 billion, while losses on securities guaranteed by Fannie Mae rose $857 million, to $1 billion, the company said. Both reverses stem “from place terms failing and recognition marketplace disruption.”

Fannie Mae, which have or warrants about 20 percentage of the place mortgage market, also gave consequences for the first and 2nd quarters, bringing it up to day of the month on its net income reports.

Net income for the first three living quarters of 2007 dropped 57 percent, to $1.51 billion, or $1.17 a share, from $3.46 billion, or $3.16, a twelvemonth earlier, the company said.

The company said the estimated just value of its nett assets, a measurement of its worth tracked by analysts and investors, driblet to $34.2 billion, a drop of $8.7 billion from the start of the year.

Fannie Mae’s mortgage recognition book of concern grew 10 percentage in the first nine months, to $2.8 trillion, the company said. Its share of the marketplace in mortgage chemical bonds rose to 41.2 percentage from 24.3 percentage in the time period in 2006.

“Fannie Mae is getting a batch more loans that ran into their recognition criteria but are at the low end of their range,” said Gary Gordon, an analyst at Portales Partners in New York. “So they will see rising recognition losings at least until 2010.”