$5.9 billion May fundings
By MortgageDaily.com staff
6/14/2005

National City Corp. production increased and appears to be headed higher.

Originations of nearly $5.9 billion during the month of May increased from $5.5 billion in April, the Cleveland, Ohio-based lender said in a mid-quarter update filing with the SEC. The volume, however, is well below $7.1 billion a year ago.

Based on the current level of fundings, National City will need at least $6.3 billion in production this month to push second quarter fundings higher than the first quarter's volume of $17.7 billion -- which looks achievable given that the current pipeline of $13.2 billion is the highest since September.

Subprime subsidiary First Franklin originated $1.5 billion of the latest volume, while the conforming division, National City Mortgage, contributed $4.4 billion, the report said.

The subsidiary fundings reportedly reflect "portfolio loan originations" reductions of nearly $1 billion for First Franklin and of about $0.6 billion for the conforming unit.

Refinances accounted for 47% of National City Mortgage's volume, the announcement said, and 31% of First Franklin's production.

The weighted average note rate of last month's originations was 7.07%, the company reported, while the weighted average credit score was 655 and the first lien weighted average loan-to-value was 78%.

Mortgage loans serviced for third parties amounted to $161.5 billion in May, National City said.

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