UPDATE 5-Countrywide gets $12 bln new financing, shares jump

(Updates shares, paragraphs 2, 7; adds North Carolina comment, paragraph 17)

By Jonathan Stempel

NEW YORK, Sept 13 (Reuters) - Countrywide Financial Corp CFC.N, the largest U.S. mortgage lender, said on Thursday it has lined up $12 billion of financing to help weather a housing slowdown that will lead to widespread layoffs.

Shares of Countrywide rose 13.9 percent, their biggest one-day gain since May 16, 2000, Reuters data showed. They closed up $2.31 at $18.93 on the New York Stock Excahnge.

The company said it recently lined up the secured financing through new or existing credit facilities. On Aug. 16, it had drawn down $11.5 billion from credit lines because it was unable to sell short-term debt to fund regular operations.

Calabasas, California-based Countrywide also said it had funded $34.4 billion of mortgage loans in August, the fewest this year and down 17.3 percent from a year earlier, as it tightened lending standards. Daily applications fell 11.8 percent to $2.33 billion. Countrywide's pipeline of mortgages being processed fell 16.8 percent from July to $51.8 billion.

Countrywide's success in finding new sources of capital "should substantially address funding concerns," Credit Suisse analyst Moshe Orenbuch wrote. "As origination volumes and mortgage pipeline decline over the coming months, we expect the stress on its funding needs should subside significantly."

Representatives of Countrywide did not immediately return requests for further comment. Chief Operating Officer David Sambol in a statement said Countrywide was confident it will be a "long-term beneficiary" of current market conditions.

Despite Thursday's gain, Countrywide shares remain down 55.4 percent this year, hurt by rising defaults, stagnating home prices, and investor resistance to buying many kinds of home loans once thought safe but now considered risky.

On Friday, Countrywide said it would fire up to 12,000 employees, or about 20 percent, by December. Analysts said deeper cuts are possible. Staffing in August fell to 60,867 from July's 61,586, the year's first monthly decline.

Companies have announced well over 50,000 mortgage-related job cuts this year. On Wednesday, Memphis, Tennessee-based First Horizon National Corp (FHN.N) announced 1,500 layoffs, mainly in mortgages, while Seattle-based Washington Mutual Inc (WM.N) announced 1,000 mortgage-related job losses.

FEWER LOANS

Countrywide this summer stopped making home loans that don't meet its own banking unit's investment criteria, or which aren't eligible to be securitized by such entities as Fannie Mae (FNM.N) and Freddie Mac (FRE.N).

Less than 4 percent of Countrywide's home loans in August were subprime, or intended for people with weak credit.

Last month, Countrywide received a $2 billion infusion from Bank of America Corp (BAC.N), which could eventually give the second-largest U.S. bank a one-sixth stake in the lender.

On Wednesday, U.S. Treasury Secretary Henry Paulson urged Countrywide Chief Executive Angelo Mozilo and other mortgage officials to help borrowers who took out adjustable-rate loans whose rates are resetting to higher levels.