Countrywide Seconds Soaring

Through the first eight months of the year Countrywide Home Loans, Calabasas, funded $7.3 billion in second liens, already surpassing last year's record volume of $6.3 billion, according to company records.Based on the "run-rate" of the first eight months Countrywide could wind up producing almost $11 billion in second mortgages this year -- a 72% gain from its volume in 2001. Countrywide senior vice president for development Vijay Lala told MortgageWirethat about half of the lender's second lien volume represents home equity loans that are part of "80-10-10" or similar structures. In these type of arrangements lenders offer a second along with a first as a way for the consumer to avoid paying mortgage insurance. (See National Mortgage News issue of November 4 for full details.)