Shares in Countrywide Financial Corp. dropped to a new 52-week low on Tuesday after the stock was downgraded.

Fox-Pitt, Kelton analyst Howard Shapiro cut his rating on the Calabasas-based lender, saying one of its main buyers of mortgages may dry up.

Countrywide's situation was hurt after Freddie Mac reported a loss of $2 billion in its third quarter early Tuesday. The loss may constrains the mortgage financier from purchasing loans on the secondary market, which would have a huge impact on Countrywide's ability to fund its loans forcing Countrywide's origination volume even lower, Shapiro said.

Earlier this month, Countrywide reported that it originated $22 billion in mortgages for the month of October, a 48 percent decline from the same time last year.

Shares in Countrywide declined more than 12 percent to $9.36 in afternoon trading Tuesday on the New York Stock Exchange.

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