Countrywide May Create Tracking Stock

Countrywide Credit Industries Inc., the biggest U.S. non-bank mortgage lender, is considering creating a tracking stock for its Internet business because investors undervalue the company. “We are considering things like a tracking stock because you get the value out,” said Angelo Mozilo, chairman and chief executive. Calabasas-based Countrywide’s stock has declined 38% this year as interest rates have risen. It’s trading at nine times trailing earnings. Rivals Fannie Mae and Freddie Mac each trade at more than 18 times 1998 per-share earnings. Countrywide has also cut 2,000 jobs and shuttered 20 of its 85 mortgage processing offices this year to trim costs. About 25% of the $19.6 billion in loans made in its fiscal second quarter ended Aug. 31 were over the Internet, Mozilo said. Countrywide shares fell $1.56 to close at $30.88 on the New York Stock Exchange.