No wonder Countrywide is falling

Just found this on money.cnn.com:

"Countrywide (CFC) said last week that 90-day delinquency rates in its $28.42 billion adjustable rate mortgage portfolio climbed more than 900% from a year earlier, up to 5.4% from 0.6% during the same period last year.

The lender also warned that 71% of its ARM borrowers are making only the minimum payment allowed -- and that 80% of those loans had not required borrowers to verify their income prior to receiving funding."

Basically; they've lent a lot of money to people they weren't even sure could pay the money back, and with the house prices free-falling they suddenly realise that it wasn't such a good and lucrative plan after all. Well duh!

I can only hope that the merger with Bank of America goes through and they do a stock-swap or something...these stocks are fast becoming penny-stocks, and not the sort that are interesting to invest in :)