(Reuters) - Like many lenders, Calabasas, California-based Countrywide has tightened its loan guidelines, and in March it stopped making some no-down-payment subprime loans. Just 7 percent of loans were nonprime from January to March, and Countrywide expects that rate to fall as low as 4 percent this quarter.
Lenders are struggling with rising defaults as U.S. home prices stagnate and investors grow less willing to buy loans that are packaged into securities. Rising subprime home loan defaults contributed to a 37 percent decline in Countrywide's first-quarter profit, to $434 million.
Read more at Reuters.com Business News
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