Delinquencies rise at Countrywide Financial

CALABASAS, CALIFORNIA (Reuters) - February 15, 2008 - Countrywide Financial (CFC), the nation’s largest mortgage lender, said Friday that delinquencies and foreclosures rose in January to the highest on record, reflecting the nation’s deepening housing and credit crunch.

Delinquencies in Countrywide’s servicing portfolio increased to 7.47% in January, from 7.2% the previous month and 4.32% in January 2007. Loan servicers collect mortgage payments and distribute them to the owners of the mortgages.

Foreclosure rates as a percentage of unpaid principal balance increased to 1.48% in January, from 1.44% in December and 0.77% in January 2007.

Countrywide services mortgages totaling about $1.48 trillion.

Countrywide also said it financed $21.9 billion of home loans in January, down 41% from a year earlier, and 6% from December.

At the same time, however, average daily loan applications rose 72% from December to $2.64 billion. Many mortgage lenders have reported an increase in demand for refinancings as benchmark interest rates decline. Daily applications were down 6% from a year earlier.

Like many lenders, Countrywide had been battered by falling home prices, rising defaults and tight capital markets.

It lost $704 million in 2007, and according to a Feb. 13 regulatory filing believed it might have faced “financial distress” had it not agreed to the Bank of America acquisition.

In January, Bank of America (BAC) agreed to purchase Countrywide for about $4 billion in stock.

Delinquencies rise at Countrywide
USA Today