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Credit Fears Chill Countrywide Financial (from forbes.com)

Things are going from bad to worse for Countrywide Financial.

According to America's largest home loan lender, Countrywide Financial, (nyse: CFC - news - people ) the serious crunch in the debt and secondary mortgage markets could batter its financial condition in the near-term.

In a Securities and Exchange Commission filing submitted late Thursday, the embattled lender described the markets' problems as "unprecedented disruptions." Following this dire prediction shares of Countrywide Financial fell 13.8% in Friday pre-market trading, however the decline eased to a 5.6% drop, or $1.61, to $27.05 in Friday afternoon trading.

Because Countrywide Financial depends heavily on credit to finance its operations, the tumult in the debt markets could jeopardize its ability to secure that funding.

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