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Countrywide's Servicing Segment Faces More Strain from Residual Interests.

Mortgage Servicing News

| October 01, 2007 | COPYRIGHT 2007 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

NEW YORK -- Like many research analysts, those at Credit Suisse have "dramatically tempered" their outlook for Countrywide Financial Corp. While most of the attention has focused on Countrywide's challenges in secondary marketing and the writedown of its residuals, credit costs are also a factor in the company's challenges.

Countrywide is expected to take significant hits to the valuation of its residual interests in loans that have been packaged into securities during the third quarter, and those writedowns will run through the company's servicing segment results. The anticipated writedowns in the value of Countrywide's residual interests in securitization deals may trim earnings by $2 per share in the second half of ...

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Source: HighBeam Research, Countrywide's Servicing Segment Faces More Strain from Residual...

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