| Principal Fundings Just Keep Falling
$6.8 billion 1st quarter production May 5, 2004 By MortgageDaily.com staff |
| Principal Financial Group Inc. mortgage production descended on a yearly and quarter-to-quarter basis.
According to its latest earnings announcement, Principal’s first quarter mortgage volume fell to $6.8 billion from the previous quarter’s total of $7.9 billion. In the first quarter last year, volume was way higher at $15.5 billion. The Iowa-based financial services company said correspondent lending delivered over half — $3.7 billion — of the latest volume, wholesale added $1.8 billion and the mortgage direct channel contributed $1.3 billion. Conventional loans were 83% of the originations and the rest were FHA/VA loans, according to the report. Principal said refinancing activity continued to be the driving force behind production as it constituted $4.9 billion of the total volume. Meanwhile, fixed-rate mortgages reportedly accounted $6.2 billion of the production, adjustable-rate mortgages followed far behind with $0.5 billion and the remainder was from balloon mortgages. The servicing portfolio of $118.4 billion at the quarter’s end, slightly decreased from the previous quarter and jumped from $113.3 billion a year ago, the report said. The weighted average interest rate of the servicing portfolio was reported at 5.88% — down 7 basis points quarter-to-quarter. The 30+ day delinquency rate on its portfolio fell to 2.7% from the fourth quarter’s 3.6% and the percentage of loans pending foreclosure was 0.5%, unchanged since the second quarter last year, Principal said. Principal also reported that its first quarter net income totaled $193.6 million. |
