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Countrywide lost $422 million, or 79 cents per share, during the fourth quarter, compared with earnings of $622 million, or $1.01 per share, during the same period the previous year.
Analysts polled by Thomson Financial, on average, forecast a loss of 30 cents per share for the quarter.
Countrywide set aside $924 million for credit losses during the fourth quarter, compared with reserves of $73 million during the final quarter in 2006.
The mortgage lender also recorded an impairment charge of $831 million during the quarter tied to securities backed by home equity lines of credit. Because of continued deterioration in the credit markets, Countrywide also took a loss of $394 million as it transferred loans to a held-for-investment portfolio.
Earlier in the month, Countrywide said it will sell itself to Bank of America Corp. for about $4 billion in stock.
[Associated Press]
AP Business Writer Stephen Bernard in New York.
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