Report: Countrywide's Volume Will Fall 30%

Because of the liquidity crisis in the secondary market, residential loan production by Countrywide Financial Corp. -- the nation's largest lender -- will fall by 30% in the current quarter, according to a new report issued by Credit Suisse.Credit Suisse also predicts a further drop in fundings by Countrywide in the fourth quarter. CS analyst Moshe Orenbuch is forecasting $96 billion in originations by Countrywide in the third quarter and $72 billion in the fourth quarter. In the first and second quarters of this year, Countrywide originated $114 billion and $130 billion, respectively, according to the Quarterly Data Report, a National Mortgage News publication. Countrywide recently said it would originate only government-sponsored enterprise loans and mortgages insured by the Federal Housing Administration and guaranteed by the Department of Veterans Affairs. The company has exited the subprime market entirely. Bank of America recently invested $2 billion in Countrywide, gaining control of 15% of its shares. Countrywide can be found online at http://www.countrywide.com.