$59.5 billion 4th quarter production
By MortgageDaily.com staff
2/9/2006

Quarterly originations tumbled, leaving Washington Mutual Inc. with a small decline in annual production.

WaMu's fourth quarter residential fundings totaled $59.5 billion, down $7.4 billion from the prior quarter and $0.7 billion from the comparable period a year ago, according to its earnings release.

Full-year 2005 fundings of $247.4 billion were off 2% from the previous year, the Seattle-based thrift said.

Adjustable-rate mortgages reportedly accounted for half of the fourth quarter's home loan volume, and refinances represented 50%.

The retail channel originated 44% of the quarter's volume, wholesale added 27% and the rest, $18.5 billion, came from the purchased/correspondent channel, according to the report.

Home equity loans and lines of credit of $9.1 billion fell from third quarter, WaMu said, while fundings from specialty arm Long Beach Mortgage Co. edged up to account for $9.7 billion.

The servicing portfolio reportedly totaled $818 billion as of Dec. 31, 2005.

WaMu announced net income of $865 million, up $44 million form the third quarter.

The home loans segment's net income, however, was $47 million, way below $191 million in the prior quarter. WaMu said the income reflected the decrease in noninterest income resulting from "the increased cost of MSR risk management due to the flattening of the yield curve throughout the year, partially offset by a reduction of the company's estimated liability to repurchase loans resulting principally from improved repurchase experience."

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