In a presentation to Wall Street yesterday David Bigelow, Countrywide’s director of investor relations, gave an update on the company’s latest numbers.
In October the company made $22 billion in new mortgae loans. It sounds like a lot, but that was nearly half as much as the company made a year ago in October. When it comes to the much-maligned subprime loans made to borrowers with bad credit, Countrywide made $42 million worth of them in October, down from $3 billion during the same month of the previous year. Past due loans have rised from 4.4% of all loans to 5.9%. Foreclosures have gone from .56% to .89%.
The company says it expects continued weakness in housing prices. Bigelow showed a chart that suggested price could decline nationally as much 8% next year. In the hardest hit markets of Arizona and Nevada prices could decline 15% next year. Price appreciation wasn’t expected to return until the fourth quarter of 2009. In the long run, the company expects a return to 3% growth.