The largest U.S. mortgage lender in its monthly operating report said it funded $23.4 billion of home loans in December, up 1 percent from the prior month, though down 44 percent from $41.7 billion a year earlier. Average daily mortgage loan applications fell 17 percent from November to $1.54 billion.
For the quarter, Countrywide said it funded $68.5 billion of mortgage loans, and $69.2 billion of total loans.
"Management is pleased with the progress we have made in positioning the company to navigate the current challenging environment," Chief Operating Officer David Sambol said in a statement.
Countrywide shares had fallen 27.4 percent on Tuesday, even after the Calabasas, California-based company rejected market rumors it was considering filing for bankruptcy protection.
Chief Executive Angelo Mozilo has said the housing slump is the worst since the Great Depression.
In its monthly report, Countrywide said foreclosures and delinquencies among the 9.03 million mortgage loans for which it collects payments rose in December to the highest level since 2002, the earliest period for which data are available.
It said the pending foreclosure rate rose to 1.44 percent from 1.28 percent in November and 0.70 percent a year earlier, while the delinquency rate rose to 7.20 percent from 6.52 percent in November, and 4.60 percent in December 2006.