Countrywide Sees Potential for More Credit Losses

Countrywide Financial, the largest U.S. mortgage lender, said it may see more credit losses as downward trends in the economy and in the real estate market conspire to boost delinquency rates....

Last month it said foreclosures and late payments rose in January to new records, reflecting the nation's deepening housing and credit crunch.

But it also said average daily mortgage application volume surged 72 percent from December, and mortgage loans being processed rose 46 percent, suggesting homeowners are taking advantage of lower interest rates to refinance.