Countrywide and IndyMac to report (lack of) earnings tomorrow

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Are you excited? Matt from the Orange County Register is! Countrywide Financial and IndyMac Bank are both scheduled to report earnings tomorrow at conference calls scheduled for 9 AM and 10 AM respectively. You’ll be able to follow the action on their investor pages. IndyMac has a live Webcast on their site. Countrywide has a dial-in number. You can view all of the latest news about them on their Yahoo! Finance. Here’s IndyMac’s Yahoo! page. Here’s Countrywide’s Yahoo! page.

Countrywide has already given guidance that its production has been off 30% YOY, and you can read more analyst expectations here.

IndyMac’s production has increased but share prices are down 2.5% in after-hours trading (at the time of this post) after Fitch downgraded the stock:

Although subprime production was less than 3 percent in 2006, IndyMac is not immune to subprime contagion and secondary market risk aversion.

So what does this all mean? It means that we should get some insight in to how these Alt-A and Prime portfolios are holding up. I would imagine their not doing too well. I had my Countrywide rep tell me that some Alt-A pools are basically illiquid right now, especially those with 100% financing loans attached to the pool. The foreclosure situation continues to worsen for Countrywide and with their large exposure to California and other overheated markets it should make for an interesting report. I also concur with Fitch on IndyMac’s susceptibility to "contagion" in to its Alt-A portfolio.