Countrywide: Lending stabilizes, foreclosures up

(Reuters) - Countrywide Financial Corp (CFC.N: Quote, Profile, Research), whose shares have tumbled on concern it might not survive the nation's housing crisis, said on Wednesday it made more loans than expected in the fourth quarter, though foreclosures among loans it services increased.

Shares of Countrywide rose 34 cents, or 6.2 percent, in pre-market trading to $5.81 from Tuesday's composite close, after earlier rising as much as 21 percent to $6.62.

In its monthly operating report, the largest U.S. mortgage lender said it funded $23.4 billion of home loans in December, up 1 percent from the prior month, though down 44 percent from $41.7 billion a year earlier. Average daily mortgage loan applications fell 17 percent from November to $1.54 billion.

"Management is pleased with the progress we have made in positioning the company to navigate the current challenging environment," Chief Operating Officer David Sambol said in a statement.

For the quarter, Countrywide said it funded $68.5 billion of mortgage loans, and $69.2 billion of total loans.

 

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