Countrywide Lending, Foreclosures Up

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Countrywide Financial Corp. said Tuesday that it made far fewer loans in July than the month before, although its lending was up 6 percent from a year earlier. At the same time, delinquencies and foreclosures increased in July.


Lending for the nation’s largest mortgage company totaled $39 billion in July while applications for new mortgages increased 5 percent when compared to the same period last year.


Funding volume decreased 14 percent from June, mainly attributed to “tighter lending guidelines that have significantly curtailed total production,” the company said in the statement.


Countrywide also said that it expected foreclosures as a percentage of unpaid principal to be 1.04 percent, up from 0.46 percent a year earlier, and 0.96 percent in June. Delinquencies rose to 5.10 percent from 4.11 percent from last year and June’s 4.98 percent.


Subprime loans made in July totaled $1.8 billion, down 3 percent from June and 46 percent from a year earlier.


Shares in Countrywide were down $1.77, or 6.7 percent, to $24.84 in afternoon trading Tuesday on the New York Stock Exchange. Shares in Countrywide have lost more than 33 percent this year.

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