Countrywide Financial Corp. reported Thursday that conditions in the mortgage market during the second quarter were hurt by rising rates, weakening housing demand and worsening loan performance. In a filing with the Securities and Exchange Commission, the company said it plans to hold more loans in its portfolio that would have otherwise been held for sale or securitization until market conditions improve. "The secondary market and funding liquidity situation is rapidly evolving and the potential impact on the company is unknown," the filing said.
More... 
