Record $18 billion 4th quarter production
By MortgageDaily.com staff
1/27/2006

Fueled by correspondent Alt-A production, IndyMac Bancorp reported record quarterly and annual originations.

Fourth quarter mortgage production of $18.0 billion was about 6% higher than the prior quarter and 60% better than the comparable period in 2004, according to IndyMac's earnings announcement Thursday. The latest fundings reportedly represent 2.85% of industry fundings and also the seventh consecutive quarter that company volume has reached an all-time high.

Full-year 2005 record fundings of $60.8 billion jumped 60% from a year earlier and grew IndyMac's annual market share 59% to a record 2.18%, the Pasadena, Calif.-based thrift said, noting that it became one of the top 10 lenders in the country.

IndyMac noted it achieved such results despite "an industry environment where volumes were down 6 percent, profit margins declined substantially and the yield curve reflected nearly 200 basis points of flattening."

"Our strong performance in mortgage production and market share continues to be driven by our strategies to offer a broad and diverse product mix and to expand our sales force and geographic presence, with an emphasis on building relationships with mortgage professionals across the country that are experts in marketing loans to consumers," said Michael W. Perry, IndyMac chairman and chief executive officer, in the announcement.

Refinances accounted for 62% of the fourth quarter's loans, IndyMac said, and ARMs represented 70%.

Alt-A loans of $11.7 billion represented the bulk of the period's production.

The majority, $9.9 billion, of the fourth quarter's fundings consisted of wholesale/correspondent loans, according to the report.

IndyMac indicated quarterly volume may continue improving, as its pipeline of mortgages in process edged up 3% during the fourth quarter to a record $9.2 billion at Dec. 31, 2005.

The parent of Financial Freedom, a reverse mortgage lender, reported its loans serviced for others rose to $84 billion at year-end 2005.

Just over 700 sales personnel were employed with IndyMac at yearend.

IndyMac announced net earnings of $72 million, down $7 million from the third quarter.

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