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September 5, 2008 8:37:02 PM CDT

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More Trouble Has Countrywide Teetering

Posted Jan 9, 08 1:40 PM CST in Business 

(Newser) – After its stock plunged yesterday on rumors it might declare bankruptcy, mortgage giant Countrywide Financial was its shares fall to a 12-year low today on news that foreclosures and late payments were up last month, Bloomberg reports. The subprime collapse has forced the company to lay off thousands, and it's under investigation by two states and the federal government.

"It appears that the housing trends in 2008 will look a lot like 2007, so Countrywide will remain under a lot of stress,'' one analyst said of the company, which saw its revenue from subprime mortgages fall to $6 million, down from $3.7 billion a year earlier. "What they are left with is a pretty low-margin business.''

Sources Bloomberg, Los Angeles Times

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A man walks into a Countrywide banking and loan office in San Mateo, Calif., Friday, Oct. 26, 2007. Countrywide Financial Corp. lost $1.2 billion in the third quarter, but its shares soared Friday after...   (Associated Press)
Angelo Mozilo, Chairman and CEO, Countrywide Financial Corp. speaks during a panel discussion on the subprime market fallout Monday, Oct. 29, 2007, in Beverly Hills, Calif. (AP Photo/Ric Francis)   (Associated Press)
Graphic shows quarterly earnings information for Countrywide Financial; two sizes; 1c x 5 inches; 46.5 mm x 127 mm; 2c x 2 3/4 inches; 96.3 mm x 69.9 mm   (Associated Press)
The Countrywide Banking and Home Loans office is seen in Glendale, Calif. in this April 26, 2007 file photo.   (Associated Press)
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