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WOW! 13% is a lot

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Mortgage and Lending with Residential Home Lending

Countrywide Financial CEO Angelo Mozilo estimates that 40 to 50 subprime

mortgage outfits are shutting down per day, and he expects these lenders to

continue to experience problems for the rest of the year. More subprime

lenders are going under at a time when Wall Street's tolerance for risky

investments, including interest-only, no-money-down and no-documentation

loans, has waned and when investment banks increasingly are sending bad

loans back to the originating lenders. About 13 percent of all subprime

loans in the United States were delinquent at the end of the third quarter,

according to the Mortgage Bankers Association. Subprime loans now account

for 13.6 percent of all U.S. home loans, the industry group estimates.