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IndyMac November Loan Production Results

IndyMac Bancorp reported total loan production of $4 billion in November, largely unchanged compared to October, but down a staggering 53% from November 2006.

The wholesale channel saw production of $2.4 billion in November, up 1% compared to October, but down 20% from last year.

The Retail Lending Group produced $345 million, a 17% jump from October and a sharp increase from the $9 million produced in November 2006.

The mortgage lender noted that $2.95 billion of its total loan production in November was eligible for sale to the GSEs, but warned of further credit restrictions on loans Fannie and Freddie purchase.

“Growth in the pipeline and resulting production volume may be negatively impacted by further credit tightening currently being implemented by the GSEs that is requiring IndyMac to implement another round of credit guideline tightening,” the company said.

The value of Indymac’s loan pipeline at the end of November was $10.7 billion, up 9% compared to October, but down 20% from November 2006.

The lender’s servicing portfolio grew from $194 billion to $196 billion in the month of November, though 30+ day delinquencies (measured in unpaid principal balance) for the total servicing portfolio rose from 6.62% in October to 7.12% in November.

The company said 30+ day delinquencies in its prime first-lien loans (which account for 93.5% of the total servicing portfolio) increased from 5.80% in October to 6.25% in November.

Subprime 30+ day delinquencies continued to rise in November, up to 26.87% compared to 24.43% in October, though subprime loans comprise of only 2.8% of their total servicing portfolio, and have been completely discontinued.

Second mortgages (which represent 3.7% of their servicing portfolio) with 30+ day delinquencies increased from 12.17% in October to 13.68% in November.

As of September 30, IndyMac’s delinquency rate of 6.96% was markedly higher than the industry rate of 5.82%.

IndyMac blamed their product mix, which has historically been more prime/Alt-A loan based compared to the industry’s more agency/conforming mix, along with the fact that only 14% of its servicing portfolio consists of loans that were originated prior to 2005, before things got murky.

Despite this, Indymac continues to experience a lower foreclosure rate than the industry, at just 1.41% versus the 1.69% industry rate, as of September 30, 2007

IndyMac shares, which lost 87 percent of their value in 2007, were down 5 cents to $6.22 in afternoon trading on Wall Street.

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