Countrywide Announces Another Big Loss

Countrywide Financial announced a $893 million loss in the first quarter ($1.60 per share) because of rising loan defaults.  The Wall St. Journal reports that a federal investigation has uncovered evidence that Countrywide sales executives falsified income figures for many borrowers, particularly in the Fast and Easy mortgage program, where borrowers did not have to provide documentation of their income.  NYTimes, Countrywide Says It Lost $893 Million in Quarter; WSJ, Countrywide Loss Focuses Attention on Underwriting.