Countrywide Slides on Lending Report

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Shares in Countrywide Financial Corp. slipped nearly 3 percent Monday after the lender said that June loan volume rose 4 percent but warned that delinquencies and defaults are also rising.


The mortgage lender reported loan fundings for the month of June totaled $45 billion, a 4 percent increase from June of 2006. Countrywide also reported that daily mortgage activity climbed 15 percent for the month to $3.1 billion, while assets at its banking operations also rose 7 percent to $90 billion.


The Calabasas-based lender added that residential funding volume was strong, mainly due to seasonal purchase activity and higher application volumes. Its mortgage loan servicing portfolio also continued to grow, reaching $1.4 trillion while commercial real estate funding volume grew 75 percent to $814 million.


But the nation’s largest mortgage lender cautioned that the housing market continues to soften as evident by an ioncrease in delinquencies to 4.7 percent, up from 3.4 percent from June 2006.


Shares in Countrywide were down $1.06, or 2.9 percent, to $35.20 in afternoon trading Monday on the New York Stock Exchange.

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