$3.1 billion 4th quarter production
By MortgageDaily.com staff
1/18/2006

Quarterly and annual originations were down at Downey Financial Corp.

Fourth quarter fundings were $3.1 billion, down 14% from the prior quarter, according to an announcement today. Compared to a year prior, production is off by one-third.

For all of 2005, production was reported at $14.8 billion, down slightly from $15.0 billion during 2004.

"During the year, we took advantage of the marketplace and originated and sold loans in excess of our portfolio needs at very healthy gains per dollar of loan sold, which contributed to our strong earnings and capital ratios," said CEO Daniel D. Rosenthal in the statement. "As 2005 ended, the volume of loan sales had declined from levels attained earlier in the year and gains per dollar of loan sold had declined to levels considered more normal."

More than $13 billion in loans held for investment have negative amortization, according to the statement.

Newport Beach, Calif.-based Downey said it serviced $5.3 billion loans for others at the end of 2005.

The Alt-A lender said loans delinquent 30 days or more represented 0.36% of its total loans.

Fourth quarter net income was $41.9 million, Downey reported.

Article © MortgageDaily.com All Rights Reserved