Shares of Seattle-based WaMu, one of the nation's largest home lenders, were down $1.46, or 11.5 percent, to $11.27 on the New York Stock Exchange in afternoon trading, continuing a year-long fall. The shares traded at over $45 a year ago.
NEW YORK (Reuters) - Washington Mutual Inc <WM.N> shares fell 13 percent on Wednesday amid concerns that rising residential defaults could be worse that expected in coming months.
Shares of Seattle-based WaMu, one of the nation's largest home lenders, were down $1.46, or 11.5 percent, to $11.27 on the New York Stock Exchange in afternoon trading, continuing a year-long fall. The shares traded at over $45 a year ago.
The WaMu stock fall came amid declines in other mortgage lenders after Countrywide Financial Corp <CFC.N>, the largest U.S. mortgage lender, said that foreclosures and late payments rose in December to the highest on record.
Countrywide shares were trading at $4.72, down 83 cents or 15 percent, amid persistent rumors that it may be forced to seek bankruptcy, an option the company rejected earlier this week.
!ADVERTISEMENT!Like rivals, Countrywide has been hurt by falling home prices, rising defaults and tighter capital markets.
"We believe the extent of the deterioration is a surprise and does not bode well for the 4Q07 results of companies with mortgage credit exposure," said Lehman Brothers analyst Bruce Harting in a note to investors about Countrywide today.
(Reporting by Dane Hamilton. Editing by Tim Dobbyn)
