Industry News

Countrywide lines up $12 billion in financing

August loan production falls 17% year-over-year

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Countrywide Financial Corp. said Thursday it had secured $12 billion in additional financing, even as loan fundings in August fell by 17 percent from a year ago and the company moves forward with plans to lay off up to 12,000 workers. Countrywide, which received a $2 billion cash infusion from Bank of America in August after drawing down an $11.5 billion line of credit from 40 banks, said that since then it has arranged for $12 billion in additional secured borrowing capacity "through new or existing credit facilities." The Calabasas, Calif.-based lender's stock was up nearly 8 percent shortly after noon on the news. But the announcement came as Countrywide reported August loan fundings fell 17 percent from a year ago, to $34.3 billion, down from a recent peak of $45.3 billion in June. The 192,211 residential mortgage loans funded in August represented a 13 percent decline from July but surpassed a recent low hit in February, when 177,806 loans were funded. In a Sept. 7 ...