NEW YORK (Reuters) - Countrywide Financial Corp, the largest U.S. mortgage lender, on Tuesday reported a 33 percent decline in second-quarter profit and slashed its full-year earnings forecast, citing a difficult housing market.
Shares of Countrywide fell 8.7 percent in pre-market electronic trading.
"Softening home prices continued to affect many areas of the country and delinquencies and defaults continued to rise across all mortgage product categories," Chief Executive Angelo Mozilo said in a statement. "Due to these adverse conditions, the company incurred increased credit-related costs in the quarter, primarily related to its investments in prime home equity loans."
Mozilo added that for the second half of the year, "we expect difficult housing and mortgage market conditions to persist."