September 6, 2007 / 12:22 AM / 10 years ago

Countrywide to cut 900 jobs in mortgage divisions

NEW YORK (Reuters) - Countrywide Financial Corp CFC.N, the largest U.S. mortgage lender, said on Wednesday it would cut 900 jobs across the country, primarily in its mortgage production divisions.

The move follows a previous round of layoffs last month, when the mortgage lender cut an unspecified number of workers in a unit that lends to borrowers who generally have little or no documentation.

The latest layoffs represent about 1.5 percent of the lender’s work force of about 60,000, according to the latest figures from the company.

“Any further changes to the Countrywide organization will reflect our ongoing strategy to align our business to the marketplace,” the Calabasas, California company said in a statement.

Countrywide faced a credit shortage in August as mortgage defaults rose and capital markets tightened. On August 16, it announced an unexpected drawdown of an entire $11.5 billion credit line because it had trouble selling short-term debt.

Countrywide Chief Executive Angelo Mozilo has said the U.S. housing downturn this year is likely to lead the country into a recession, but that his company will survive.

Reporting by Ed Leefeldt

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