Shares in IndyMac Bancorp Inc. dropped more than 20 percent Monday but rebounded slightly in early trading Tuesday.

IndyMac said late Monday that it wrote $2.9 billion in mortgages in January, off 33 percent from December and 66 percent from a year earlier.

The number of borrowers who are more than 30 days late on a payment also rose to 7.8 percent by the end of January, up from 7.5 percent a month earlier.

Pasadena-based IndyMac also reported that 83 percent of its loans made in January were eligible for resale on the secondary market to government-sponsored entities, compared with 73 percent in December. The secondary mortgage market is a key source of capital for lenders.

The struggling lender posted a fourth quarter loss of $509 million the first loss in its history. However, Chief Executive Michael Perry said IndyMac has a "realistic shot" at becoming profitable in 2008, saying he expected the company to post a $13 million profit in 2008.

Shares in IndyMac closed down 22 percent Monday to $4.92 but gained 2 percent to $5.01 in early trading Tuesday on the New York Stock Exchange.

For reprint and licensing requests for this article, CLICK HERE.