Countrywide Loses $893 Million in First Quarter

Calabasas, Calif.–Countrywide Financial said Tuesday it had lost $893 million in the first quarter due to the U.S. housing slump, the Financial Times said.Provision for credit losses on its residential loan investments rose from $158 million last year to $1.5 billion.Currently being acquired by the Bank of America, Calabasas, Calif.-based Countrywide–which was heavily involved in the subprime market–posted a profit of $434 million in the first quarter of 2007.Bank of America expects to complete its $4 billion takeover of the lender in the third quarter and has said Countrywide will at that point no longer offer subprime loans to high-risk borrowers.