Countrywide sees business stabilizing
Mortgage lender closed more loans in November, but foreclosures also rise
Reuters
updated 8:24 a.m. ET, Wed., Jan. 9, 2008
NEW YORK - Countrywide Financial Corp., whose shares have tumbled amid worries about the largest U.S. mortgage lender's survival prospects, on Wednesday said it made more loans than it expected in the fourth quarter, though homeowner foreclosures and delinquencies rose.
In its monthly operating report, Countrywide said it funded $23.4 billion of mortgage loans in December, up 1 percent from the prior month, though down 44 percent from $41.7 billion a year earlier. Average daily mortgage loan applications fell 16.9 percent from November to $1.54 billion.
For the quarter, Countrywide said it funded $68.5 billion of mortgage loans, and $69.2 billion of total loans.
"Management is pleased with the progress we have made in positioning the company to navigate the current challenging environment," Chief Operating Officer David Sambol said in a statement.
Countrywide shares rose 47 cents, or 8.5 percent, to $6.02 in pre-market trading.
The shares had fallen 27.4 percent on Tuesday. Some of the decline came even after the Calabasas, California-based company rejected market rumors that it was considering filing for bankruptcy protection.
In its monthly report, Countrywide also said foreclosures and delinquencies among mortgage loans it services, or for which it collects payments, rose in December to the highest level since 2002, the earliest period for which figures are available.
It said the pending foreclosure rate rose to 1.44 percent from 1.28 percent in November and 0.70 percent a year earlier, while the delinquency rate rose to 7.20 percent from 6.52 percent in November, and 4.60 percent in December 2006.
Countrywide's mortgage loan servicing portfolio rose to $1.48 trillion at year end, as homeowners prepaid fewer loans.
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