Countrywide posts December results – stable loans but foreclosures up

Source: Exec Digital USA

Date :09/01/2008 11:38:14

Countrywide Financial Corp., the nation's largest mortgage lender, said today that it made more loans than expected in the fourth quarter, with foreclosures increasing too.

In its monthly operating report, the largest U.S. mortgage lender said it funded $23.4 billion of home loans in December, up one percent from the prior month, but down 44 percent from $41.7 billion a year earlier. Average daily mortgage loan applications were down 17 percent from November to $1.54 billion.

The Company said that the pending foreclosure rate climbed to 1.44 percent from 1.28 percent the previous month, and 0.70 percent the year before.

Upbeat

Despite this rise, David Sambol, President and Chief Operating Officer, remained positive:

"Our fourth quarter ended with a number of positive operational trends," he said.

"Total loan fundings were $24 billion for the month of December, up slightly from November 2007 and ahead of our forecasts. This pushed our fourth quarter fundings to $69 billion, also exceeding our expectations.

“Although average daily mortgage loan applications and the pipeline of mortgage loans-in-process decreased from November, this reflected a seasonal decline typically seen this time of year.”

"Management is pleased with the progress we have made in positioning the Company to navigate the current challenging environment," Sambol concluded.

January 9, 2008