Report: Countrywide Begins Layoffs

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Countrywide Financial Corp., the nation’s largest mortgage lender, has begun laying off staff as part of its effort to ride out the credit crunch that has rocked the home loan industry, according to a report published today, the Associated Press reports.


The job cuts occurred in Countrywide’s Full Spectrum Lending unit, according to the Wall Street Journal, citing an internal e-mail sent Friday to employees of that division.


The e-mail didn’t disclose how many employees were laid off from that division, which handles many Alt-A mortgages, which are given to customers who either have minor credit problems or who cannot provide full income documentation required to get a traditional prime loan.


Last week, Countrywide, which as a whole employs about 61,000 people, was forced to borrow $11.5 billion so it could keep making home loans. It was a move that rattled investors who have watched a number of smaller mortgage companies go under because of credit problems.


Countrywide Financial spokesman Daniel Weidman did not immediately respond to a phone message left early Monday seeking comment.


Its shares rose 74 cents, or 3.5 percent, to $22.17 in early trading today after rising 13 percent on Friday. They have traded in a 52-week range of $15 to $45.26 over the past 52 weeks.


Read the full Associated Press story

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