Industry NewsMortgage

Countrywide’s third quarter in the red

Losses mount, but loan production rises 6%

Don't miss the real estate event of the summer
Join 4,000 real estate pros at Connect SF, Aug 7‑11, 2017

Countrywide Financial Corp. boosted loan production in the first three months of the year but reported an $893 million net loss for the first quarter as charge-offs climbed and the company boosted loss provisions. The Calabasas, Calif.-based lender earned $434 million in the same quarter a year ago, but has been in the red since posting a $1.2 billion net loss in the third quarter and a $422 million net loss in the fourth quarter of 2007. Countrywide officials said the company boosted first-quarter loan originations by 6 percent from the previous quarter, to $73 billion, but provisions for credit losses on residential loans hit $1.5 billion, up from $925 million in the previous quarter and $158 million a year ago. Countrywide said charge-offs totaled $606 million, compared with $283 million in the fourth quarter of 2007 and $39 million a year ago. Countrywide boosted reserves to credit losses by $1 billion, to $3.4 billion. About 72 percent of mortgages funded during the...