Countrywide Earnings

Countrywide Financial (CFC) just reported what will probably be its last quarter as an independent company. I won't rehash all the losses and write offs that were detailed in the press release, but I did notice one thing that scared me a little.

CFC reported a delinquency rate of 5.76% in its servicing portfolio for Conventional 1st liens. This is up from 4.41% and 3.05%, at the quarters ending September 30, 2007, and December 31, 2006, respectively.

The delinquency rate for sub prime was a sky high 33.64%, but that did not come as a surprise to me.