1st quarter production $11.2 billion
By MortgageDaily.com staff
4/20/2005

Golden West Financial Corp. broke a string of quarterly production increases.

Loan originations were $11.2 billion during the first quarter, the Oakland, Calif.-based thrift reported, off nearly $2 billion from 2004s final quarter. During the first quarter last year, production was reported at $9.4 billion.

Golden West, the parent of World Savings Bank, said originations were the highest of any first quarter during the company's history. But the latest numbers represent the first quarterly decline since early 2003.

Adjustable rate mortgages made up 99% of loans funded, the report said, while 78% of production was for refinances. The ARM and refinance share at Golden West are far higher than the industry norm -- respectively at 35% and 38% -- according to the Mortgage Bankers Association.

"Originating ARMs is an important part of our strategy, because the yields on these loans are responsive to changes in interest rates, thereby helping to limit the company's earnings sensitivity when rates fluctuate," said Chairman Herbert Sandler.

First quarter net earnings were reported at $348 million.

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