But, the nation’s largest mortgage lender said it would turn a profit this quarter and next year and its stock soared again, the Los Angeles Times reported.

Most of the losses were in dud loan mortgage sales and markdowns on the value of loans intended for sale but which no one would buy. The company's huge loss was the first quarterly deficit Countrywide has reported in 25 years

Countrywide said it would get back on track in part by snubbing subprime and other higher-risk loans. It said it was now focusing on plain-vanilla mortgages, which are safer and salable, if far less lucrative, than those exotic loans that helped ignite the housing boom.