Countrywide Slumps As Firm Draws Down Credit Line |
| CNNMoney.com - Aug 16, 2007 |
Shares of Countrywide Financial Corp. (CFC) tumbled in premarket trading after announcing it drew down an $11.5 billion credit facility to boost its liquidity as the nation's largest mortgage lender deals with slack demand for mortgage- related investments and commercial paper.
The Calabasas, Calif., also said it has accelerated plans to migrate its mortgage-production operations into its banking operations. Countrywide already originates more than 70% of its volume through Countrywide Bank, and the firm intends for nearly all origination to be in the bank by the end of September.
"As we have previously discussed, secondary market demand for non-agency mortgage-backed securities has been disrupted in recent weeks," said President David Sambol. "Along with reduced liquidity in the secondary market, funding liquidity for the mortgage industry has also become constrained."
Read Full Article from CNNMoney.com
- Posted: 2007-08-16 09:29:50
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