Non-Prime Mortgage Pressure: Losses due to non-prime mortgage defaults resulted in a 33% decrease in quarterly profits for Q2 2007, causing year end forecasts for company-wide revenues to be lowered by 10.5%.
Stigma Stemming from Racial Bias Suits: Countrywide has been sued by four African Americans, as well as the NAACP, in class action lawsuits claiming that Countrywide and its affiliates use discriminatory methods to increase closed mortgage rates.