Countrywide Financial Braves Higher Mortgage Rates

CALABASAS, Calif. -- Countrywide Financial announced Tuesday that earnings continued to surge in the second quarter, despite higher mortgage rates. The nation's largest mortgage bank reported a 30% rise in revenues to $3 billion for the quarter, and a 27% increase in net income to $722 million, or $1.15 a share, compared to the same quarter last year. Loan production rose only slightly, by 2.5%, over the second quarter in 2005, but that was more than offset by healthy increases in servicing and other fees. In addition, Countrywide reported a $231 million improvement in the valuation of its hedging portfolio, over the first quarter. For the first six months of the year Countrywide reported a 24% rise in revenues to $5.8 billion, and a 12% increase in net income to $1.4 billion, or $2.25 a share, compared to the first half of last year.