CALABASAS, Calif. - (07/27/05) -- The ongoing refinancing boomcontinued to wreak havoc on Countrywide Financial Corp., whichreported a 28% drop in second-quarter earnings, to $566 million, or92 cents a share, compared to the same quarter last year, due to amassive swing in the value of its servicing portfolio. The nation'sbiggest mortgage lender reported a $1.4 billion loss for funds setaside for the recovery of mortgage servicing rights, compared to a$1.2 billion gain in the second quarter last year--as recordnumbers of its borrowers continue to refinance their mortgages.However, all but $261 million of the $2.6 billion difference, wasmade up by a $2.3 billion swing in the value of the company'shedging portfolio. The ongoing mortgage boom helped pushCountrywide's loan production up 21% over last year, to $121billion for the quarter, and its servicing portfolio by 33% to anew high of $964 billion at mid-year. For the first six months ofthe year, Countrywide reported a 6% drop in net income to $1.26billion, or $2.05 a share, compared to the first half lastyear.
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As AI and digital assets become mainstream, banks are spotting new opportunities to integrate payments with other activities.
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House Republicans overcame internal divisions to narrowly pass President Trump's tax and spending package Thursday afternoon. The measure would cut the Consumer Financial Protection Bureau's funding level, among other provisions.
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A new partnership with Google Cloud will let the Spanish bank offer Gemini to all staff after a successful ChatGPT deployment.
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Atlanta-based CoastalSouth's initial public offering prices at $21.50 a share; Valley National Bancorp announces Lyndsey Sloan will succeed Gary Michael as general counsel; Webster Financial Corporation taps a new chief risk officer and appoints a new board member; and more in this week's banking news roundup.
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Capital One closed the deal to buy the credit card provider in May and as part of the review process, decided to exit its home equity lending business.
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In a rare move for a credit union, the Seattle institution has snapped up the 13-member team that created EarnUp's AI Advisor product.
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