Countrywide Financial Corp, the largest U.S. mortgage lender, said on Friday foreclosures and late payments rose in January to the highest on record, reflecting the nation's deepening housing and credit crunch.
The foreclosure rate for the 9.02 million mortgages on which Countrywide collects and processes payments roughly doubled to 1.48 percent from 0.77 percent a year earlier, and rose from December's 1.44 percent.
Delinquencies rose to 7.47 percent of unpaid balances from 4.32 percent a year earlier, and 7.20 percent in December. Countrywide services $1.48 trillion of home loans.
Countrywide also said it funded $21.9 billion of home loans in January, down 41 percent from $37.1 billion a year earlier, and 6 percent from December's $23.4 billion.
At the same time, however, average daily loan applications soared 72 percent from December to $2.64 billion. Many mortgage lenders have reported an increase in demand for refinancings as benchmark interest rates decline. Daily applications were nevertheless down 6 percent from $2.82 billion a year earlier.
Last month, Countrywide agreed last month to be acquired by Bank of America Corp in a transaction valuing it on Thursday at about $4.4 billion, or $7.70 per share.
Like many lenders, Countrywide had been battered by falling home prices, rising defaults and tight capital markets.
It lost $704 million in 2007, and according to a Feb 13 regulatory filing believed it might have faced "financial distress" had it not agreed to the Bank of America acquisition.
Shares of Countrywide closed Thursday at $6.92 on the New York Stock Exchange.
