Countrywide Financial says it lost $893 million during the first quarter due to a sharp increase in its provision for loan losses.
The Calabasas, Calif.-based mortgage lender says it lost $893 million, or $1.60 per share, during the first quarter. Countrywide has said it earned $434 million, or 72 cents per share, during the year-ago period.
Thomson Financial says analysts expected Countrywide Financial Corp. to earn 2 cents per share.
Countrywide says it set aside $1.5 billion to cover loan losses. Charge-offs — loans written off as not being repaid — totaled $606 million during the first quarter.
In January, Countrywide agreed to sell itself to Bank of America for about $4 billion in stock.