IndyMac Bancorp said delinquencies and foreclosures continued to rise in January as loan origination volume slumped.
The Pasadena, CA-based mortgage lender said total loan production was $2.9 billion in January, down 33 percent from December and 66 percent from January 2007.
The company’s loan pipeline also dwindled to just $8.8 billion at the end of January, a 36 percent decline from the same period a year ago.
IndyMac said $2.4 billion of January’s loan production was eligible for sale to the GSEs, a 10 percent increase from loans produced in December.
That said, prime jumbo loan production slid to just $233 million during the month, down from $689 million in December.
Delinquencies inched up during the month, with 30+ day lates measured in unpaid principal balance rising to 7.79 percent at the end of January, up from 7.50 percent a month earlier.
Like delinquencies in prime first lien loans rose to 6.85 percent from 6.59 percent, while subprime 30+ day lates climbed to 28.18 percent from 28.09 percent.
On a positive note, despite the rise in delinquencies, the rate of increase slowed between December and January, compared to the prior month’s movement.
However, 30+ delinquencies tied to second mortgages increased to 16.35 percent from 14.84 percent, a 151 basis point rise after a 116 point rise from November to December.
Foreclosures also marched higher, rising to 3.02 percent from 2.65 percent in December, and REOs increased to 1.12 percent in January, up from 0.93 percent a month earlier.
Shares of IndyMac sunk $1.07, or 17.40%, to $5.08 on the news.
There have also been bankruptcy rumors swirling since last week signaling that the lender could be in serious trouble.
See the full report here.
(photo: psd)