$60.6 billion 4th quater production
By MortgageDaily.com staff
1/20/2005

Washington Mutual Inc.'s annual volume shrunk by nearly 40%, but subprime originations were strong.

The Seattle-based company announced Wednesday it originated nearly $60.6 billion in residential loans during the fourth quarter, a 3% uptick from the previous quarter.

Volume for 2004 amounted to $254.6 billion -- a sharp decline from $417.5 billion a year earlier, according to the earnings announcement.

Nearly 70% of the fourth quarter's volume reportedly consisted of adjustable-rate fundings.

Home equity loans and lines of credit continued to decrease in the fourth quarter, comprising $9.3 billion of originations, the banking behemoth said. Specialty mortgage finance production from subprime unit Long Beach Mortgage grew throughout the whole year with the biggest jump -- 24% -- in the fourth quarter to $9.4 billion.

About 46% of the latest production came from retail, wholesale accounted for 29% and the rest came from purchased/correspondent transactions, the bank reported.

WaMu announced annual net income fell 26% to $2.88 billion in part due to "lower securities gains and lower home loan mortgage banking income, reflecting a steep decline in national mortgage originations." Slowed mortgage demand slashed yearly mortgage banking income by 56% to about $0.6 billion.

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