Countrywide cuts another 900 jobs

Sept. 5, 2007 at 9:49 PM
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CALABASAS, Calif., Sept. 5 (UPI) -- No. 1 U.S. mortgage lender Countrywide Financial Corp. said Wednesday it would cut another 900 jobs due to lower lending volumes and rising defaults.

The cuts are in addition to 500 cuts Countrywide said Aug. 20 it would make in its Full Spectrum Lending division, which handles home mortgages between prime and subprime, and in the unit that deals with loans originated through brokers.

Wednesday's layoffs, representing about 1.5 percent of the lender's workforce of about 60,000, are mainly in its mortgage-production divisions, Countrywide said.

The company statement didn't provide details.

"Any further changes to the Countrywide organization will reflect our ongoing strategy to align our business to the marketplace," the Calabasas, Calif., company said.

Countrywide drew down its entire $11.5 billion credit line with 40 banks Aug. 16 so it could keep making home loans.

Bank of America Corp. said Aug. 23 it would invest $2 billion in Countrywide. The investment represents about 16 percent of Countrywide's $12.6 billion market value.

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