Market Risk Soars In 2004
Countrywide Financial Corp. is trumpeting the "soaring" level of its December 2004 funding. But if you peek at the details what has exploded is the riskiest sectors of the market:
"Adjustable-rate loan fundings of $18 billion for the month were 91 percent greater than December 2003"
"Monthly home equity loan fundings of $3.1 billion were up 74 percent more than December 2003"
"Subprime loan volume for December rose 91 percent over December 2003"
The results of the fourth quarter had similar year on year percentage increases.