Countrywide Eases Target for Growth

Countrywide Financial Corp., the biggest U.S. mortgage lender, on Tuesday modified plans to double its share of the U.S. mortgage market to 30% in three years, setting a new target year of 2010.

Describing the projection as a “stretch goal,” Countrywide Chief Executive Angelo R. Mozilo said in a statement that the earlier target was part of a culture of setting “aggressive targets.”

Countrywide has maintained the 2008 target since October 2003 as low mortgage rates spurred more people to buy homes or refinance loans. Mortgage rates have stayed historically low for longer than the company expected, postponing industry consolidation and Countrywide acquisition plans.

“We perceived that the refinancing boom would end sooner than it has,” David Sambol, head of Countrywide’s mortgage banking unit, said during an investor forum at Countrywide’s headquarters in Calabasas. He said part of the company’s estimates for market-share growth “were premised” on an industry contraction occurring earlier.

Earlier Tuesday, an industry trade group reported that U.S. sales of previously owned homes rose 4.5% to a seasonally adjusted 7.2 million units in April -- the fastest pace in history. The median price for all housing types rose 15% from a year earlier, to a record $206,000.

Countrywide shares have risen 51% since the company set its original target. The stock, down 2% this year, fell 37 cents Tuesday to $36.26 on the New York Stock Exchange. The company said last month that first-quarter profit rose 27% as demand for loans increased.

“The new expectation puts them more in line with what’s realistic,” said Michael Vinciquerra, an analyst at Raymond James Financial Inc. who rates the stock “strong buy.”