Countrywide ‘pleased’ with trends

Countrywide (CFC) insists it doesn’t have a liquidity problem. The troubled mortgage lender released its December numbers Wednesday morning, a day after the stock plunged 28 percent to a new low amid rumors the firm would be forced into bankruptcy. Countywide denied the bankruptcy speculation Tuesday afternoon, and Wednesday it claimed the fourth quarter “ended with a number of positive operational trends,” such as above-target loan fundings and declining prepayment speeds that bolster the value of its mortgage-servicing portfolio.

While the company conceded that mortgage loan applications and the size of its mortgage pipeline both dropped from November levels, it chalked those declines up to seasonal trends. Operating chief David Sambol, proud recipient of a perk-laden employment contract last year, shrugs off the stock’s collapse and indicates for the umpteenth time that Countrywide will survive the real estate downturn. “Management is pleased with the progress we have made in positioning the company to navigate the current challenging environment,” he says.

Still, bond market blogger Accrued Interest remains unconvinced Countrywide can turn its promised fourth-quarter profit. He notes the steep discount on Countrywide bonds and offers up this thought: “You know when you and your friends start talking about old movies or old bands? Inevitably someone names some actor or musician comes up and someone says, ‘I just saw him on TV the other day.’ And someone else says ‘He’s still alive?’ I kind of feel that way about Countrywide.” Sambol wouldn’t be pleased.