Delinquencies on subprime home loans that Countrywide Financial owns or services for other investors rose to 19 percent by the end of 2006, up from 15.2 percent at the end of 2005 and 11.3 percent at the end of 2004.

Subprime loans pending foreclosure also rose to 3.53 percent, compared with 2.03 percent at the end of 2005 and 1.74 percent at the close of 2004, Countrywide said in its annual report to investors.

The $116.2 billion in subprime mortgages serviced by Countrywide account for 9 percent of the lender’s $1.28 trillion owned servicing portfolio.

Most of the servicing portfolio — 83 percent, or $1.06 trillion in loans — consists of conventional mortgages. Those loans had a delinquency rate of 2.76 percent at the end of the year, up 16 basis points from the end of 2005. The foreclosure rate for conventional mortgages was up 11 basis points to .31 percent.

The delinquency rate for FHA-insured and VA-guaranteed mortgages at the end of 2006 was down 67 basis points from the previous year, to 13.94 percent, with 1.28 percent of those loans pending foreclosure. Government-backed mortgages in the servicing portfolio totaled $53 billion, or 4 percent of loans.

The percentage of delinquencies among all loans in Countrywide’s servicing portfolio, including $47.6 billion in prime home equity loans, stood at 5.02 percent at year-end, up from 4.61 percent at the end of 2005 and 3.83 percent at the close of 2004. Loans pending foreclosure across all loan types stood at .65 percent at year-end, up from .44 percent at the close of 2005.

In reporting fourth-quarter results in January, Countrywide said $2.06 billion in net earnings from mortgage banking for the year represented a 15 percent decline from 2005 profits. But the company, which employed 54,655 workers at year-end, also has banking and insurance divisions and posted a record profit of $2.67 billion.

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×