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Thursday, Mar 28, 2024

Countrywide Earnings Fall Sharply

Countrywide Financial Corp. reported earnings plummeted 33 percent in the second quarter to $485.1 million or $0.81 per share on a 15 percent revenue decline. The Calabasas based mortgage behemoth cut its full-year earnings forecast as well. Countrywide’s revenues fell to $2.55 billion. Countrywide revised its full-year forecast to a range of $2.70 to $3.30 per share, down from $3.50 to $4.30 per share forecast in April. The April forecast was revised downward from projections in January. “We expect difficult housing and mortgage market conditions to persist,” said Angelo Mozilo, CEO of Countrywide. “Softening home prices continued to affect many areas of the country and delinquencies and defaults continued to rise across all mortgage product categories.” The company’s earnings results included a $388 million writedown in the value of “prime” home equity-backed loan assets and a $25 million writedown for subprime assets.

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