Industry News

Countrywide reportedly laying off workers in Alt-A division

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Countrywide Financial Corp. has begun laying off an unspecified number of workers in its Full Spectrum Lending unit, the Wall Street Journal reported, citing an e-mail sent Friday to employees of the division. The unit handles Alt-A mortgages, which Countrywide has announced it will cut back on in an effort to make 90 percent of the loans it originates eligible for repurchase by Fannie Mae and Freddie Mac or consistent with its banking division's investment criteria. Countrywide did not respond to requests for comment from Inman News. Countrywide and other mortgage lenders are facing difficulties obtaining short-term loans and selling the loans they originate in the secondary market. Countrywide officials say they plan to weather the difficult period by moving all mortgage loan production from Countrywide Home Loans Inc. to Countrywide Bank by the end of September. In an internal memo obtained by Inman News last week, company executives said that strategy was not ex...