Interest Rate Exposure
Theres alot of interest rate sensitive risk exposure out there.
Recently turned mortgage REIT New Century Financial expanded assets at a 79% annualized rate during the quarter to $19.0 billion. Total Assets were up 114% during 2004, and increased from $2.4 billion to begin 2003. Fourth quarter Total Originations were up 39% from comparable 2003 to $11.5 billion.
Adjustable-rate increased to 78% of Originations, up from the year ago 74.1%. Notably, Interest-only originations increased from $215 million to $2.45 billion, to an eye-opening 21.3% of Total Originations.
Countrywide Financial: At $15.1 billion, ARMs were up from the year ago $9.5 billion to 53% of total fundings and Subprime was up 92% to $3.9 billion.
Home Equity Fundings were up 75% from January 2004 to $2.7 billion, Countrywide Financial Corp. originated $30.9 billion in home-equity loans last year, a 71 percent annual increase.
In a conference call last week, Wells Fargo & Co. said its home- equity volume jumped 45 percent last year.
Overall, home-equity originations climbed 35 percent last year to a record $431.3 billion, according to SMR Research Corp., a market-research firm in Hackettstown, N.J. Most of the growth has been in variable-rate lines of credit that are tied to the prime rate, currently 5.25 percent.
See Home Equity Loans hit record high: Wall Street Journal
http://www.sfgate.com/cgi-bin/article.cgi?f=/news/archive/2005/01/20/financial0922EST0053.DTL
Recently turned mortgage REIT New Century Financial expanded assets at a 79% annualized rate during the quarter to $19.0 billion. Total Assets were up 114% during 2004, and increased from $2.4 billion to begin 2003. Fourth quarter Total Originations were up 39% from comparable 2003 to $11.5 billion.
Adjustable-rate increased to 78% of Originations, up from the year ago 74.1%. Notably, Interest-only originations increased from $215 million to $2.45 billion, to an eye-opening 21.3% of Total Originations.
Countrywide Financial: At $15.1 billion, ARMs were up from the year ago $9.5 billion to 53% of total fundings and Subprime was up 92% to $3.9 billion.
Home Equity Fundings were up 75% from January 2004 to $2.7 billion, Countrywide Financial Corp. originated $30.9 billion in home-equity loans last year, a 71 percent annual increase.
In a conference call last week, Wells Fargo & Co. said its home- equity volume jumped 45 percent last year.
Overall, home-equity originations climbed 35 percent last year to a record $431.3 billion, according to SMR Research Corp., a market-research firm in Hackettstown, N.J. Most of the growth has been in variable-rate lines of credit that are tied to the prime rate, currently 5.25 percent.
See Home Equity Loans hit record high: Wall Street Journal
http://www.sfgate.com/cgi-bin/article.cgi?f=/news/archive/2005/01/20/financial0922EST0053.DTL
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