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Countrywide Reeling From Mortgage Woes

No. 1 mortgage company warns investors of 'unprecedented disruptions'

By Jason Farago, Newser Staff

Posted Aug 10, 2007 5:42 AM CDT

(Newser) – The nation's largest mortgage lender has warned that troubles in the subprime credit market have led to "unprecedented disruptions" that will hurt their bottom line. The Los Angeles Times reports that Countrywide is steeling its investors for bad news: in a suddenly illiquid market the already-troubled company has been forced to hold $1 billion more "non-prime" mortgages than intended.

Countrywide reports in its SEC filing that the subprime meltdown has forced it to hold on to extra loans that it would normally sell off. Countrywide hopes that it will be able to ride out a mortgage market downturn but has admitted that "the potential impact on the company is unknown." Since the subprime crisis began six months ago about 70 mortgage lenders have stopped business.

The Countrywide Banking and Home Loans office in Glendale, Calif., is seen in this April 26, 2007 file photo . Countrywide Financial Corp. said Monday, Aug. 6, 2007 it has access to $46.2 billion in... (Associated Press)

Countrywide filed with the Securities and Exchange Commission today. (BusinessWeek)

Angelo Mozilo, CEO of Countrywide. (Countrywide)

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Countrywide Reeling From Mortgage Woes

No. 1 mortgage company warns investors of 'unprecedented disruptions'

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Some Critics of Rate Freeze May Be Angry Investors

FDIC chief speculates that investors are blasting the plan to boost their income

Subprime Crisis Sparks a Spate of Legal Battles

Investors, homeowners, banks head to court, but obstacles lie ahead

Ex-Banker: Yeah, Collapse Was Our Fault

So why haven't homeowners been bailed out?

Perry Gave Huge Tax Grants to Subprime Lenders

Countrywide, WaMu got $35M as they upped risky loans

Fed Hits Wells Fargo With Record $85M Fine

Bank accused of mortgage abuses

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Countrywide Reeling From Mortgage Woes

No. 1 mortgage company warns investors of 'unprecedented disruptions'

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OTHER STORIES ON OUR RADAR

investors • subprime mortgages • United States • mortgage • market • Countrywide

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Some Critics of Rate Freeze May Be Angry Investors

FDIC chief speculates that investors are blasting the plan to boost their income

Subprime Crisis Sparks a Spate of Legal Battles

Investors, homeowners, banks head to court, but obstacles lie ahead

Ex-Banker: Yeah, Collapse Was Our Fault

So why haven't homeowners been bailed out?

Perry Gave Huge Tax Grants to Subprime Lenders

Countrywide, WaMu got $35M as they upped risky loans

Fed Hits Wells Fargo With Record $85M Fine

Bank accused of mortgage abuses

About Us

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Newser By Users

Community

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More News

What is Newser?