NovaStar Financial Announces Third-Quarter Results
Earnings Rise as Loan Portfolio Grows and Cost Efficiencies are Realized
KANSAS CITY, Mo. – November 7, 2005 – NovaStar Financial, Inc. (NYSE: NFI), a residential lender and mortgage Real Estate Investment Trust, today reported $34.6 million net income available to common stockholders in the third quarter of 2005, up 52 percent from $22.7 million a year earlier. Earnings per share available to common stockholders were $1.12 in the third quarter, a 26 percent increase from $0.89 a year earlier, on a larger number of shares outstanding in the current period.
As announced in September, the Board of Directors declared a common stock dividend of $1.40 per share, to be paid November 22, 2005, to common stockholders of record as of November 8, 2005.
In addition, the Board of Directors declared a quarterly dividend of $.55625 per share on its 8.90% Class C Cumulative Redeemable Preferred Stock to holders of record as of December 1, 2005, payable on December 30, 2005.
“We made progress during the quarter in growing production, lowering costs, and managing risks in the portfolio,” said Scott Hartman, Chief Executive Officer.
Among other highlights of third-quarter 2005 performance:
| • | NovaStar originated a record $2.8 billion in loans, up 14 percent from the year-earlier quarter. |
| • | Portfolio of loans under management grew 27 percent to $14.1 billion at September 30, 2005. |
| • | Portfolio net interest income was $63.4 million, up 68 percent from a year earlier. |
| • | Annualized return on common equity was 28 percent, vs. 32 percent a year earlier. |
Greg Metz, Senior Vice President and Chief Financial Officer, commented: “Our third quarter results, in the face of a challenging interest rate environment, reinforce the benefits of our financially disciplined business strategy. Cost control and production efficiency will continue to be a primary focus as we move into 2006. However, even with our cost control initiatives, we expect cost of production to rise in the fourth quarter due to an anticipated seasonal decrease in loan volume.”
Dividend Guidance
Consistent with previous guidance, NovaStar’s management believes that dividends declared for common stockholders during calendar 2005 will total $5.60 per share. Through the third quarter, three common stock dividends totaling $4.20 per share have been declared, and management expects a fourth-quarter dividend to be declared on or about December 14, 2005. The amount and timing of future dividends are determined by the Board of Directors based on REIT tax requirements and business trends at the time, so this dividend guidance is subject to change as necessary.
On September 14, 2005, NovaStar declared a $1.40 common dividend payable on November 22, 2005. With this declaration, the company declared dividends that completed the distribution of its 2004 taxable income. Going forward, NovaStar intends to retain REIT status, which requires the company to declare dividends equal to, or in excess of, 90 percent of its 2005 taxable income by the filing of the company’s 2005 federal tax return. Estimated taxable income available to stockholders year-to-date in 2005 has been $229 million (see table).
Dividend Carry-over Analysis | ||
(In millions) | ||
|
|
|
Estimated 2005 REIT Taxable Income through September 30, 2005 | $ 229 | |
| Less: 2005 dividend declarations applied to 2005 taxable income | (32) |
Estimated 2005 REIT Taxable Income Remaining to be Distributed | $ 197 |
Mortgage Banking
NovaStar originated $2.8 billion in nonconforming loans, the highest quarter on record and an increase of 14 percent from the third quarter of 2004.
“NovaStar Mortgage has taken several actions to bring down our cost of wholesale origination, achieving a reduction of more than 60 basis points from first quarter levels. Continued progress on this front will enable our mortgage lending operations to continue producing high quality assets for our portfolio while maintaining a respectable level of profitability,” said Lance Anderson, President and Chief Operating Officer.
Nonconforming loans originated in the quarter had a weighted-average coupon of 7.5 percent, with a weighted-average FICO credit score of 632 and an average loan-to-value ratio of 81.6 percent.
The average cost of wholesale production was 2.16 percent in the quarter, down from 2.79 percent in the first quarter and 2.41 percent in the third quarter of 2004. About 73 percent of third-quarter originations came from independent mortgage brokers, 17 percent through retail offices and 10 percent from correspondent lenders.
Portfolio Management
Loans under management grew to $14.1 billion at September 30, 2005, with a third-quarter annualized average return on those assets of 1.82 percent. Net interest income on the portfolio was $63.4 million in the third quarter, an increase of 68 percent from a year earlier. NovaStar securitized $2.1 billion in nonconforming loans in the third quarter in support of the portfolio. The company also sold approximately $490 million in nonconforming loans to other financial institutions.
“NovaStar expanded our loan portfolio to $14 billion in the quarter, while continuing to limit our exposure to rising interest rates and credit risk. As of September, we estimate the duration of our managed loan portfolio at 0.19% while maintaining deep mortgage insurance on 51% of portfolio assets,” said Mike Bamburg, Senior Vice President and Chief Investment Officer.
Third quarter earnings in accordance with generally accepted accounting principles (GAAP) included mark to market pretax gains of $5.8 million relating to hedging instruments and impairments of $8.3 million in the valuation of securities. Accounting rules for portfolio-related transactions can introduce volatility in quarterly GAAP earnings as a result of market movements in interest rates, but NovaStar employs hedging to mitigate risk and manage the portfolio in the interest of long-term shareholder value.
Liquidity and Borrowing Capacity
NovaStar maintained strong liquidity and raised additional capital in the third quarter to fund the growth of its portfolio. As of September 30, 2005, NovaStar had borrowing capacity of $3.5 billion from major lenders. Cash and available liquidity totaled $264 million.
Focus on Key Metrics
In addition to full reporting under GAAP, NovaStar provides information on key performance metrics related to stockholder value:
Summary of Key Performance Metrics | |||||||
| |||||||
|
| Third Quarter | Nine Months Ended September 30 | ||||
(In thousands, except per share data) | 2005 | 2004 | Change | 2005 | 2004 | Change | |
|
|
|
|
|
|
|
|
Earnings (GAAP) |
|
|
|
|
|
| |
| Net Income available to common | $34,630 | $22,725 | 52% | $106,026 | $86,338 | 23% |
| EPS available to common (diluted) | $1.12 | $0.89 | 26% | $3.60 | $3.40 | 6% |
| Return on average equity | 25.5% | 26.9% |
| 45.1% | 53.8% |
|
| Return on average common equity | 28.0% | 31.6% |
| 50.8% | 57.4% |
|
|
|
|
|
|
|
|
|
REIT Taxable Income & Dividends |
|
|
|
|
|
| |
| Est. REIT taxable income | $67,793 | - | - | $228,701 | - | - |
| Est. REIT taxable income per common share | $2.20 | - | - | $7.44 | - | - |
| Dividends declared per common share | $1.40 |
$1.40 |
0% | $4.20 | $4.10 |
2% |
|
|
|
|
|
|
|
|
Lending & Originations |
|
|
|
|
|
| |
| Nonconforming loan production | $2,779,316 | $2,427,412 | 14% | $7,084,799 | $6,189,332 | 14% |
| Cost of wholesale production (a) | 2.16% | 2.41% |
| 2.44% | 2.49% |
|
|
|
|
|
|
|
|
|
Portfolio Performance |
|
|
|
|
|
| |
| Portfolio loans under management | $14,094,048 | $11,073,505 | 27% | $14,094,048 | $11,073,505 | 27% |
| Portfolio net interest income | $63,438 | $37,650 | 68% | $162,388 | $107,821 | 51% |
| Portfolio return on average assets |
1.82% |
1.48% |
| 1.63% | 1.61% |
|
|
|
|
|
|
|
|
|
Common Stock Data |
|
|
|
|
|
| |
| High market price per share | $42.55 | $48.69 |
| $49.88 | $70.32 |
|
| Low market price per share | $30.50 | $37.29 |
| $30.50 | $28.75 |
|
| Book value per common share (diluted) | $15.52 | $11.61 | 34% | $15.52 | $11.61 | 34% |
(a) As required by Regulation G, a reconciliation of cost of production to the most directly comparable GAAP financial measure is set forth in the table attached as Exhibit 1 to this press release.
Core Earnings
In addition to GAAP earnings, NovaStar evaluates quarterly performance using core earnings, a management measure that adjusts net income and EPS to exclude quarterly timing differences due to the accounting treatment of hedging and mortgage loans. Core earnings for the quarter were $29.2 million, or $0.94 per diluted share.
Core Earnings (Adjusted from GAAP) (a) |
|
|
|
| Third Quarter | ||
(In millions, except per share data) | 2005 | 2004 | Change |
|
|
|
|
Core earnings (Net income excluding hedging gain/loss) | $29.2 | $33.1 | -12% |
Core earnings per share available to common shareholders, fully diluted | $0.94 | $1.30 | -28% |
(a) As required by Regulation G, a reconciliation of core earnings to the most directly comparable GAAP financial measure is set forth in the table attached as Exhibit 2 to this press release.
Investor Conference Call
The NovaStar third quarter investor conference call is scheduled for 10:00 a.m. Central time (11:00 a.m. Eastern time) on November 8, 2005. The conference call will be webcast live and archived on the company's website at www.novastarmortgage.com. To participate in the call, please contact 888-202-2422 approximately 15 minutes before the scheduled start of the call. A copy of the presentation slides will be available on the website by 9:00 a.m. Central time (10:00 a.m. Eastern time). For investors unable to participate in the live event, a replay will be available until November 15 at 888-203-1112. The confirmation code for the replay is 5593124.
About NovaStar
NovaStar Financial, Inc. (NYSE: NFI) is a specialty finance company that originates, purchases, sells, invests and services residential nonconforming loans. A Real Estate Investment Trust (REIT) founded in 1996, NovaStar efficiently brings together the capital markets, a nationwide network of mortgage brokers and American families financing their homes. NovaStar is headquartered in Kansas City, Missouri, and has lending operations nationwide.
For more information, including quarterly portfolio data, please visit our website at www.novastarmortgage.com.
Certain matters discussed in this presentation may constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements are those that predict or describe future events and that do not relate solely to historical matters. Forward-looking statements are subject to risks and uncertainties and certain factors can cause actual results to differ materially from those anticipated. Some important factors that could cause actual results to differ materially from those anticipated include: our ability to generate sufficient liquidity on favorable terms; the size and frequency of our securitizations; interest rate fluctuations on our assets that differ from our liabilities; increases in prepayment or default rates on our mortgage assets; changes in assumptions regarding estimated loan losses and fair value amounts, changes in origination and resale pricing of mortgage loans; our compliance with applicable local, state and federal laws and regulations and the impact of new local, state or federal legislation or regulations or court decisions on our operations; the initiation of margin calls under our credit facilities; the ability of our servicing operations to maintain high performance standards and maintain appropriate ratings from rating agencies; our ability to expand origination volume while maintaining an acceptable level of overhead; our ability to adapt to and implement technological changes; the stability of residual property values; the outcome of litigation or regulatory actions pending against us; the impact of losses resulting from natural disasters; the impact of general economic conditions; and the risks that are from time to time included in our filings with the SEC, including our 2004 Annual Report on Form 10-K. Other factors not presently identified may also cause actual results to differ. This document speaks only as of its date and we expressly disclaim any duty to update the information herein.
CONTACT:
NovaStar Financial, Inc.
Jeffrey A. Gentle, 816-237-7424 (Investor Relations)
| or |
Mike Enos, 816-237-7597 (Press)
Exhibit 1
The following table is a reconciliation of overhead costs included in our cost of wholesale production to general and administrative expenses, presented in accordance with accounting principles generally accepted in the United States of America (GAAP) and the resulting cost of production. The reconciliation does not address premiums paid to brokers since they are deferred at origination under GAAP and recognized when the related loans are sold or securitized. We believe this presentation provides useful information regarding our financial performance because it more accurately reflects the direct costs of loan production and allows us to monitor the performance of our core operations, which is more difficult to do when looking at GAAP financial statements, and provides useful information regarding our financial performance. Management uses this measure for the same purpose. However, this presentation is not intended to be used as a substitute for financial results prepared in accordance with GAAP.
Cost of Wholesale Production
(dollars in thousands, except total cost of wholesale production as a percentage)
| For the Nine Months |
| For the Three Months | ||||||||
| Ended September 30, |
| Ended September 30, | ||||||||
|
| 2005 |
|
| 2004 |
|
| 2005 |
|
| 2004 |
General and administrative expenses | $ | 172,685 |
| $ | 157,130 |
| $ | 55,887 |
| $ | 54,597 |
Mortgage portfolio management general and |
|
|
|
|
|
|
|
|
|
|
|
administrative expenses |
| (11,928) |
|
| (5,424) |
|
| (4,174) |
|
| (1,820) |
Branch operations general and administrative |
|
|
|
|
|
|
|
|
|
|
|
expenses |
| (39,537) |
|
| (53,255) |
|
| (13,315) |
|
| (19,112) |
Consolidation eliminations |
| - |
|
| 10,013 |
|
| - |
|
| 5,093 |
Mortgage lending and loan servicing general and |
|
|
|
|
|
|
|
|
|
|
|
administrative expenses |
| 121,220 |
|
| 108,464 |
|
| 38,398 |
|
| 38,758 |
Direct origination costs classified as a reduction in |
|
|
|
|
|
|
|
|
|
|
|
gain-on-sale |
| 33,214 |
|
| 33,674 |
|
| 11,787 |
|
| 12,930 |
Costs of servicing |
| (25,185) |
|
| (17,191) |
|
| (8,531) |
|
| (6,264) |
Other lending expenses |
| (22,743) |
|
| (31,717) |
|
| (7,390) |
|
| (11,237) |
Wholesale overhead costs |
| 106,506 |
|
| 93,230 |
|
| 34,264 |
|
| 34,187 |
Premium paid to broker, net of fees collected |
| 40,703 |
|
| 40,139 |
|
| 15,459 |
|
| 14,823 |
Total cost of wholesale production (A) | $ | 147,209 |
| $ | 133,369 |
| $ | 49,723 |
| $ | 49,010 |
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale production, principal | $ | 6,032,713 |
| $ | 5,366,646 |
| $ | 2,301,254 |
| $ | 2,035,128 |
Total cost of wholesale production, as a percentage |
| 2.44% |
|
| 2.49% |
|
| 2.16% |
|
| 2.41% |
(A) Includes loans originated through NovaStar Home Mortgage, Inc. and purchased by our wholesale division in NovaStar Mortgage, Inc. Only the costs borne by our wholesale division are included in the total cost of wholesale production.
Exhibit 2
NovaStar Financial, Inc.
Reconciliation of GAAP Income to Core Income
(Dollars in thousands, except per share data)
| 2003 | 2004 | 2005 | ||||||
| 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q |
|
|
|
|
|
|
|
|
|
|
GAAP Net Income Available to Common Shareholders | $ 25,108 | $ 35,208 | $ 29,650 | $ 33,963 | $ 22,725 | $ 22,787 | $ 33,540 | $ 37,856 | $ 34,630 |
|
|
|
|
|
|
|
|
|
|
Mark to Market adjustment of Derivative Instruments - previous qtr. | $ (2,116) | $ (4,506) | $ 103 | $ (4,331) | $ 7,783 | $ (2,572) | $ 2,675 | $ 3,370 | $ (3,278) |
Mark to Market adjustment of Derivative Instruments - current qtr. | 4,506 | (103) | 4,331 | (7,783) | 2,572 | (2,675) | (3,370) | 3,278 | (2,171) |
Adjustment to Compute Core Income | 2,390 | (4,609) | 4,433 | (12,114) | 10,355 | (5,247) | (695) | 6,648 | (5,448) |
|
|
|
|
|
|
|
|
|
|
Core Income Available to Common Shareholders | $ 27,498 | $ 30,599 | $ 34,083 | $ 21,849 | $ 33,080 | $ 17,540 | $ 32,845 | $ 44,504 | $ 29,181 |
|
|
|
|
|
|
|
|
|
|
Fully Diluted GAAP EPS | $ 1.09 | $ 1.45 | $ 1.17 | $ 1.34 | $ 0.89 | $ 0.85 | $ 1.19 | $ 1.29 | $ 1.12 |
Fully Diluted Core EPS | 1.19 | 1.26 | 1.35 | 0.86 | 1.30 | 0.65 | 1.17 | 1.52 | 0.94 |
|
|
|
|
|
|
|
|
|
|
Fully Diluted Shares | 23,049 | 24,342 | 25,274 | 25,377 | 25,455 | 26,937 | 28,111 | 29,295 | 30,962 |
Core income is not a measure of income in accordance with generally accepted accounting principles (GAAP). It is calculated as GAAP income less net unrealized gains/losses on trading account derivatives, plus unrealized gains/losses on trading account derivatives from the previous reporting period. Management believes that core income can provide relevant information regarding the current earnings power of the firm.
At the end of a reporting period, the company holds mortgage loans awaiting securitization. The company also holds derivative instruments, used to hedge interest rate risk in the mortgage loans. GAAP accounting standards require these mortgage loans to be carried on the balance sheet at the lower of cost or market, and any gain taken upon sale (usually in the following quarter). However, changes in value of the derivatives are recognized through the income statement. This creates a timing difference when the asset and hedge gain/loss are recognized in different periods.
The company's core income measure attempts to match the change in value of mortgage loans awaiting securitization with the change in value of derivative instruments used to hedge interest rate risk. Core income, as defined by the company, excludes current period valuation adjustments to derivatives in its trading account and includes valuation adjustments to derivatives in its trading account from the prior reporting period. This adjustment to GAAP income essentially moves the gain/loss in its trading account derivatives into the following period, when the mortgage loans being hedged are sold through securitization.
NovaStar Financial, Inc.
SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA
(dollars in thousands)
(unaudited)
| For the Three Months Ended |
| For the Nine Months Ended | |||||||||||
|
| 9/30/2005 |
|
| 6/30/2005 |
|
| 9/30/2004 |
|
| 9/30/2005 |
|
| 9/30/2004 |
NovaStar Financial Inc. Income Statement Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income | $ | 88,083 |
| $ | 71,131 |
| $ | 59,789 |
| $ | 221,269 |
| $ | 163,824 |
Interest expense |
| 25,044 |
|
| 17,022 |
|
| 14,350 |
|
| 58,673 |
|
| 35,800 |
Fee income |
| 14,722 |
|
| 14,460 |
|
| 12,747 |
|
| 44,221 |
|
| 40,235 |
Gains on sales of mortgage assets |
| 10,829 |
|
| 32,570 |
|
| 46,415 |
|
| 61,784 |
|
| 123,369 |
Gains (losses) on derivative instruments |
| 6,522 |
|
| (7,848) |
|
| (19,536) |
|
| 13,275 |
|
| (17,819) |
Impairment on mortgage securities available-for-sale |
| (8,328) |
|
| (126) |
|
| (2,575) |
|
| (10,066) |
|
| (8,692) |
General and administrative expenses |
| 55,887 |
|
| 60,206 |
|
| 54,597 |
|
| 172,685 |
|
| 157,130 |
Income before tax expense (benefit) |
| 34,118 |
|
| 36,629 |
|
| 27,684 |
|
| 108,315 |
|
| 108,150 |
Income tax expense (benefit) |
| (2,750) |
|
| (2,995) |
|
| (269) |
|
| (4,710) |
|
| 9,664 |
Income from continuing operations |
| 36,868 |
|
| 39,624 |
|
| 27,953 |
|
| 113,025 |
|
| 98,486 |
Loss from discontinued operations, net of income tax |
| (575) |
|
| (105) |
|
| (3,565) |
|
| (2,010) |
|
| (7,547) |
Preferred dividends |
| (1,663) |
|
| (1,663) |
|
| (1,663) |
|
| (4,989) |
|
| (4,601) |
Net income available to common shareholders |
| 34,630 |
|
| 37,856 |
|
| 22,725 |
|
| 106,026 |
|
| 86,338 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations available to common |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders | $ | 1.15 |
| $ | 1.31 |
| $ | 1.05 |
| $ | 3.71 |
| $ | 3.77 |
Loss from discontinued operations, net of income tax | $ | (0.02) |
| $ | - |
| $ | (0.14) |
| $ | (0.07) |
| $ | (0.30) |
Net income available to common shareholders | $ | 1.13 |
| $ | 1.31 |
| $ | 0.91 |
| $ | 3.64 |
| $ | 3.47 |
Diluted earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations available to common |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders | $ | 1.14 |
| $ | 1.29 |
| $ | 1.03 |
| $ | 3.67 |
| $ | 3.70 |
Loss from discontinued operations, net of income tax | $ | (0.02) |
| $ | - |
| $ | (0.14) |
| $ | (0.07) |
| $ | (0.30) |
Net income available to common shareholders | $ | 1.12 |
| $ | 1.29 |
| $ | 0.89 |
| $ | 3.60 |
| $ | 3.40 |
Dividends declared per common share | $ | 1.40 |
| $ | 1.40 |
| $ | 1.40 |
| $ | 4.20 |
| $ | 4.10 |
Dividends declared per preferred share | $ | 0.56 |
| $ | 0.56 |
| $ | 0.56 |
| $ | 1.68 |
| $ | 1.55 |
Book value per diluted share | $ | 15.52 |
| $ | 16.29 |
| $ | 11.61 |
| $ | 15.52 |
| $ | 11.61 |
| As of |
|
|
|
|
|
| |||||||
|
| 9/30/2005 |
|
| 6/30/2005 |
|
| 9/30/2004 |
|
|
|
|
|
|
NovaStar Financial, Inc. Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans - held for sale | $ | 1,231,280 |
| $ | 1,074,108 |
| $ | 1,026,776 |
|
|
|
|
|
|
Mortgage loans - held in portfolio |
| 42,480 |
|
| 48,569 |
|
| 65,833 |
|
|
|
|
|
|
Mortgage securities - available for sale |
| 541,948 |
|
| 543,911 |
|
| 462,487 |
|
|
|
|
|
|
Total assets |
| 2,230,345 |
|
| 2,149,092 |
|
| 1,894,857 |
|
|
|
|
|
|
Borrowings |
| 1,531,891 |
|
| 1,443,152 |
|
| 1,414,184 |
|
|
|
|
|
|
Stockholders' equity |
| 557,385 |
|
| 580,619 |
|
| 376,125 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| For the Three Months Ended |
| For the Nine Months Ended | |||||||||||
|
| 9/30/2005 |
|
| 6/30/2005 |
|
| 9/30/2004 |
|
| 9/30/2005 |
|
| 9/30/2004 |
Other Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Servicing portfolio | $ | 14,094,048 |
| $ | 13,607,366 |
| $ | 11,073,505 |
| $ | 14,094,048 |
| $ | 11,073,505 |
Loans sold for cash - Non-conforming wholesale | $ | 490,067 |
| $ | 227,195 |
| $ | - |
| $ | 717,262 |
| $ | - |
Loans securitized | $ | 2,140,171 |
| $ | 1,649,289 |
| $ | 2,759,716 |
| $ | 5,889,460 |
| $ | 5,829,804 |
Percent of securitized loans covered by mortgage insurance |
| 51% |
|
| 48% |
|
| 45% |
|
| 51% |
|
| 45% |
Weighted average coupon of mortgage loans - held for sale |
| 7.6% |
|
| 7.5% |
|
| 7.6% |
|
| 7.6% |
|
| 7.6% |
NovaStar Financial, Inc.
LOAN ORIGINATION DATA
(dollars in thousands)
(unaudited)
|
| For the Three Months Ended | ||||||||||||
|
|
|
| As a % |
|
|
|
| As a % |
|
|
|
| As a % |
|
| 9/30/2005 |
| of Total |
|
| 6/30/2005 |
| of Total |
|
| 9/30/2004 |
| of Total |
Non-conforming loan origination volume |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-conforming |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale | $ | 2,036,262 |
| 73% |
| $ | 1,828,166 |
| 78% |
| $ | 1,561,414 |
| 64% |
Correspondent/Bulk |
| 266,926 |
| 10% |
|
| 127,720 |
| 5% |
|
| 286,513 |
| 12% |
Retail |
| 476,128 |
| 17% |
|
| 401,746 |
| 17% |
|
| 579,485 |
| 24% |
Total non-conforming production volume | $ | 2,779,316 |
| 100% |
| $ | 2,357,632 |
| 100% |
| $ | 2,427,412 |
| 100% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
# of funding days in the quarter |
| 64 |
|
|
|
| 64 |
|
|
|
| 64 |
|
|
Average originations per funding day | $ | 43,427 |
|
|
| $ | 36,838 |
|
|
| $ | 37,928 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail production volume |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-conforming |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold to non-affiliates | $ | 131,148 |
| 17% |
| $ | 151,226 |
| 21% |
| $ | 514,949 |
| 29% |
Held by NMI |
| 476,128 |
| 62% |
|
| 401,746 |
| 56% |
|
| 579,485 |
| 33% |
Total non-conforming | $ | 607,276 |
| 79% |
| $ | 552,972 |
| 77% |
| $ | 1,094,434 |
| 62% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conforming |
| 166,457 |
| 21% |
|
| 160,988 |
| 23% |
|
| 671,711 |
| 38% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total retail production volume | $ | 773,733 |
| 100% |
| $ | 713,960 |
| 100% |
| $ | 1,766,145 |
| 100% |
|
| For the Three Months Ended 9/30/05 | |||||||
|
| Weighted |
| Weighted |
|
| Weighted |
|
|
|
| Average |
| Average |
|
| Average |
| Percent |
|
| Coupon |
| LTV |
|
| FICO |
| of Total |
|
|
|
|
|
|
|
|
|
|
Summary by Credit Grade |
|
|
|
|
|
|
|
|
|
660 and above |
| 6.98% |
| 82.6% |
|
| 701 |
| 33% |
620 to 659 |
| 7.32% |
| 82.2% |
|
| 640 |
| 25% |
580 to 619 |
| 7.65% |
| 81.6% |
|
| 600 |
| 21% |
540 to 579 |
| 8.20% |
| 80.4% |
|
| 559 |
| 14% |
539 and below |
| 8.73% |
| 77.6% |
|
| 528 |
| 7% |
|
|
|
|
|
|
|
|
|
|
|
| 7.50% |
| 81.6% |
|
| 632 |
| 100% |
|
|
|
|
|
|
|
|
|
|
Summary by Program Type |
|
|
|
|
|
|
|
|
|
2-Year Fixed |
| 7.79% |
| 82.4% |
|
| 611 |
| 54% |
2-Year Fixed IO |
| 6.90% |
| 81.7% |
|
| 661 |
| 22% |
3-Year Fixed |
| 7.26% |
| 77.7% |
|
| 619 |
| 1% |
3-Year Fixed IO |
| 6.72% |
| 79.8% |
|
| 663 |
| 1% |
5-Year Fixed |
| 7.04% |
| 77.9% |
|
| 659 |
| 0% |
5-Year Fixed IO |
| 6.63% |
| 76.9% |
|
| 672 |
| 0% |
15-Year Fixed |
| 7.80% |
| 74.3% |
|
| 649 |
| 2% |
30-Year Fixed |
| 7.09% |
| 75.5% |
|
| 642 |
| 13% |
30-Year Fixed IO |
| 6.69% |
| 76.9% |
|
| 663 |
| 1% |
Other Products |
| 9.81% |
| 94.3% |
|
| 669 |
| 5% |
MTA |
| 1.71% |
| 77.4% |
|
| 706 |
| 1% |
|
|
|
|
|
|
|
|
|
|
|
| 7.50% |
| 81.6% |
|
| 632 |
| 100% |
Weighted Average Coupon Excluding MTA |
| 7.57% |
|
|
|
|
|
|
|