Countrywide Stock Surges on News It Will Join the S&P 500

Countrywide Credit Industries, the nation's second-largest mortgage lender, will be added to the Standard & Poor's 500 Index after the close of trading Tuesday.

The Calabasas, Calif.-based lender will replace US Life, an insurance company that is being acquired by American General Corp. That acquisition is expected to be approved by shareholders of both companies tomorrow.

Countrywide will join Fannie Mae, Freddie Mac, and MGIC Investment Corp., the nation's largest mortgage insurer, as mortgage companies that are part of the S&P 500 index, one of the stock market's key barometers.

S&P announced Wednesday that Countrywide would join the index. On Thursday the stock gained 9%, to $29.625, as mutual funds that hold all of the companies in the S&P 500 bought shares. Countrywide was at $30.25 at midafternoon Friday.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER