Countrywide delinquencies still climbing

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Good morning, again. The sell-off of Countrywide Financial shares resumed this morning on news that foreclosures and delinquencies continued to mount in December.

The company’s overall level of mortgage activity inched higher in December, though, prompting president David Sambol to remark, ‘Management is pleased with the progress we have made in positioning the company to navigate the current challenging environment.’

The foreclosure and delinquency numbers are below. While I’m on the subject, I wanted to respond to the criticism yesterday that this blog sheepishly follows mainstream media reports (often written by the New York Times’ Gretchen Morgenson) that call into question Countrywide’s business practices, and that the blog ignores other commentary (often posted at Calculated Risk) that argues Countrywide is no better or worse than the rest of the mortgage industry.

Time, and quite possibly criminal juries, will settle that debate. My main interest in Countrywide is that I believe it’s the best proxy available for the entire mortgage industry. Bad news at Countrywide reflects more than just the company’s business ethics, practices and judgment -- it reflects what’s going on in the entire mortgage industry, and by extension, the American economy. Was Countrywide a leader or a follower? It doesn’t really matter: it’s the biggest player.

Month Mortgage fundings Delinquencies* Foreclosures**
March $43.2 B 4.29% .69%
April $40.5 B 4.45% .69%
May $44.4 B 4.71% .71%
June $45.3 B 4.98% .74%
July $39.1 B 5.10% .79%
Aug. $34.4 B 5.05% .89%
Sept. $21.2 B 5.87% .92%
Oct. $22.0 B 5.89% .89%
Nov. $23.1 B 6.34% .94%
Dec. $23.4 B 6.96% 1.04%

*Delinquencies, as a percentage of loans serviced
**Pending foreclosures, as a percentage of loans serviced

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Photo credit: Countrywide CEO Angelo Mozilo, from the L.A. Times