Countrywide hit harder than I expected

It's apparent that Countrywide was hit harder by the subprime marketi than we originally anticipated. I had originally thought based on their perfomance last quarter. The subprime part of Countrywide's portfolio drove down profit by 37% over the previous quarter. I had expected Countrywide's internal knowledge of the California market (and how cyclic it can be) to mitigate some exposure to the fall out in the subprime market. It's apparent that even Pasadena based Indymac isn't immune. "IndyMac, whose Alt-A loans aren't supposed to be as risky as subprime mortgages, reported its lowest profit in almost three years. Earnings fell to $52.4 million, or 70 cents a share, from $79.9 million, or $1.18 million a year earlier."

Media Reports:
Bloomberg on Countrywide's 1st Quarter 2007
CNN Money on Countrywide