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Countrywide's Delinquent Loans Surge, Stock Drops

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Jan 9, 2008 4:11 pm US/Pacific

Countrywide's Delinquent Loans Surge, Stock Drops

LOS ANGELES (AP) ― Countrywide Financial reports the percentage of borrowers who missed payments on home loans rose last month, signaling worsening trouble for the nation's largest mortgage lender and for the entire mortgage sector.

The company, based in Calabasas, also reported today that it funded $23.5 billion in loans in December -- a steep decline from $42.8 billion in the year-ago period.

The new figures drove Countrywide stock down by more than 15 percent at one point in the day before it recovered to end down 35 cents, or 6.4 percent, at $5.12.

The decline followed a loss of $2.17, or 28.4 percent, Tuesday after the company denied rumors that a bankruptcy filing was imminent.

Wachovia Capital Markets analyst Jim Shanahan suggests Countrywide stock will remain volatile at least until the company reports its financial results for the fourth-quarter later this month.

Countrywide says nearly 7 percent of the loans in its servicing portfolio were delinquent last month, up from slightly more than 5 percent in December 2006.

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