Countrywide's 3Q Profits Dive

Countrywide Financial Corp., Calabasas, Calif., has reported earnings of $582 million ($0.94 per share) for the third quarter, down 47% from $1.1 billion ($1.93 per share) in the record-setting third quarter of last year.Pretax earnings by the company's mortgage banking operations totaled $633 million in the third quarter, down from $1.41 billion a year earlier. "On a year-over-year basis, third-quarter earnings are difficult to compare given the record refinance volume and the convergence of other favorable events experienced during last year's third quarter, which generated by far the best financial results in the company's history," said Angelo R. Mozilo, Countrywide's chairman and chief executive officer. ".... In line with a reduction in volume and a loan production mix shift to lower-margin adjustable-rate product, overall production margins declined 43 basis points from last year and 12 basis points from the second quarter of 2004, to 82 basis points." Countrywide said its servicing portfolio rose to a record $786 billion, up $141 billion from the level at the start of the year. As of shortly before noon Wednesday, Countrywide's stock had fallen 13.7%, to $32.36 per share. The company can be found online at http://www.countrywide.com.