Comments on: What’s going on with Countrywide?

By: morganb

morganb — Wed, 18 Feb 2009 23:21:19 +0000

Duane, you should call back today and ask about your options under the
Homeowner Affordability and Stability Plan announced today by Obama:
http://blownmortgage.com/2009/02/18/obamas-mort...

--
P. Morgan Brown
http://www.twitter.com/morganb
http://www.linkedin.com/in/morganb

By: morganb

morganb — Wed, 18 Feb 2009 22:21:19 +0000

By: Duane

Duane — Tue, 17 Feb 2009 23:12:50 +0000

I currently have a mortgage with Countrywide. Facing a foreclosure, called them today and asked to work out or modify my loan. The suggestion I was given? File bankruptcy. They do not even want to try and work with me. Beleive it or not, I was told by a Countrywide Customer service representive with the work out department to go and file bankruptcy.

By: lilmama2008

lilmama2008 — Thu, 16 Oct 2008 04:56:54 +0000

i think countrywide sucks i have been trying 2 get my mortgage fixed 4 3 yers now every time countrywide comes up with some lame bs so i say f them they dont care about all the people they r hurting greed is the root of all evil my friends & countrywide is greed

By: Countrywide Home Loans begins layoffs in its subprime mortgage lending division

Countrywide Home Loans begins layoffs in its subprime mortgage lending division — Tue, 21 Aug 2007 03:11:53 +0000

[...] which may have faced a severe liquidity crisis or concerns last week when it tapped $11 billion in credit, acknowledged that they will be focusing more on agency products (conforming loans sold to Fannie [...]

By: Josh

Josh — Mon, 20 Aug 2007 17:58:01 +0000

As an employee of CFC on the inside I have no worries. Think about it. The media has blown everything out of proportion, because we took a credit line out. If anyone knows anything about credit lines you are borrowing money that is available to you. Why wouldn’t a mortgage company borrow from itself at a time like this even if it is only for security. What company out there has the capability to have billions of dollars to tap into? Obviously not any of the companies that have gone bankrupt. I think it is a very smart move. We have the capability of not having to worry about selling our subprime loans on the secondary market which is one of the reasons other companies are losing their subprime programs or going bankrupt. CW is the only secure mortgage lender out there right now.

By: Edward Smith

Edward Smith — Sat, 18 Aug 2007 14:09:43 +0000

Bailout??? Please. A stock analyst from Merill Lynch says SELL and everyone buys in? These are the same analysts that said BUY on AHM, New Century and others.Please. We are talking about Countrywide here. These guys are diversified beyond the scope of the AHM’s and New Century’s of the world. This is a GIANT in the industry, a stellar corporate performer for over 30 years. Bailout….give me a break.

By: Morgan Brown

Morgan Brown — Fri, 17 Aug 2007 05:02:24 +0000

I have to agree with Dr. HB and Tony on this one. Countrywide doesn’t need to be bailed out. If we’re bailing out any one (which I think is a mistake) lets bail out the home owners.

I don’t think we need to bail out Countrywide. Big companies fail all the time; the economy gets rocked and keeps going, better and stronger because of it.

By: Dr. Housing Bubble

Dr. Housing Bubble — Thu, 16 Aug 2007 17:53:52 +0000

Any talk of a bail out is absurd. There is some poetic justice in this since Countrywide is facing a credit squeeze like many of their recent homeowners that were put into exotic home financing. Who do these homeowners have to turn to? It isn?t like John who just got foreclosed on has a lifeline to Big Ben. ?Yeah, Ben, I bought a massively overpriced home and now I need a credit line, what do you say?? Essentially, they are being foreclosed upon yet Countrywide wants to be bailed out by the federal government (read you and me) regarding their negligent lending practices? I didn?t hear them stepping in when times were good and they were making money left and right. And it looks like their leader has been anticipating this for sometime since he is selling stock like crazy:

http://finance.yahoo.com/q/it?s=CFC

How do you feel about that? The fact that this mega company is now falling because of ridiculous monopoly loans. Need I show you some examples of homes that were financed in the last 5 years to make this more concrete? Those in the housing industry have been laughing all the way to the bank and now they want those that are financially prudent to step in and show some compassion. Where was their compassion when they were signing folks with 100 percent LTV mortgages and put folks into a loan product that had the largest kick back rate?

Interesting logic from those in the industry. When we are making money stay out of our way. Now that times are rough, can you please step in big bad government and offer us some corporate welfare? Cognitive dissonance of hands off government when times are good and socialistic bail out talk when times are tough. Doesn’t work that way.

By: Tony Gallegos

Tony Gallegos — Thu, 16 Aug 2007 17:33:27 +0000

Morgan,

Mr. Berkland above states Countrywide is in fact the “strongest” mortgage lender that is being brought to its knees, I however disagree that CFC is or has has been the “strongest” lender on the playing field. While Countrywide has been the #1 mortgage lender in terms of loan volume, much of their loan volume was through correspondent and broker channnels. Additionally, a large portion of their volume has been in option-ARM, sub-prime and other niche products. They have never been the number one retail lender over the course of four quarters. Subsequently, much of their retail volume was gained via buying and paying HUGE sign-on bonus’ to top producing LO’s. Simply put, their greatest growth was based off a business model suited for an environment of extreme growth and high liquity. The problem is, in a down market, they do not have a large depository base to back them up. That is NOT what I call the strongest mortgage lender.

Heck, Enron was larger than CFC, yet the problem with them was their business model was not built upon the fundamentals of sustainable growth. I’m not claiming CFC has commited the crimes Enron leadership committed, just that their business model over the last few years was based on a thriving business environment.

The Chases, B of A’s and Wells will come out of this mess fine. For the most part, a correspondent or brokers business model is not based upon Countrywide. The strong lenders will easily absorb both the volume and functions CFC is currently serving.

Good loans that follow fundamental underwriting principles are still being done. Expect the mortgage product mix to more closely resemble the product mix from 2002, not the happy go-go days of 2006. The fundamentals and common sense will prevail.

Good business fundamentals will prevail.