Comments on: Random Countrywide Malaise

By: Blue horse shoe

Blue horse shoe — Fri, 25 Jan 2008 04:17:02 +0000

The mortgage industry is in a complete meltdown. Same goes with the economy, this will not end well.

By: Blue horse shoe

Blue horse shoe — Fri, 25 Jan 2008 04:16:32 +0000

The mortgage industry is in a complete meltdown…

By: NorCal CMPS

NorCal CMPS — Thu, 25 Oct 2007 16:15:37 +0000

That internal Mail is IDENTICAL to the internal message we got @ ABC both from Don Henig (ABC CEO) and Michael Strauss (AHM CEO). IMO the shoe isn’t going to drop, it’s going to explode.
On Option ARM’s @ CFC.. those notes were (for the most part) 110-115% recasts. They had a history of setting off recast during the 15-18th months.
Those same notes were also sold with 2yr. Hard PrePays which left a client with a 2% penalty in a near term refinance OR a full-indexed, fully-amortized note rate either way it was a kick in wallet especially for those that didn’t save the difference to ward off the evil housing spirits…
My bet is that those late paying borrowers were 80-95% LTV loans that are now at 90-115 ltv based on new value.

By: Derek

Derek — Thu, 25 Oct 2007 14:00:24 +0000

Allen,

I am a recruiter for a major bank. Are you in CA? Let me know, I can introduce you to a hiring manager.

By: Dr Chaos

Dr Chaos — Thu, 25 Oct 2007 06:15:55 +0000

I think lenders were totally misinterpreting the meaning of the FICO scores.

All they really say, is “given two people with score Y and score X, if they take on the same loan in the same financial circumstance, who is more likely to pay it off?”
If score Y is bigger than score X, then Y is more likely to pay off.

But even if you put an 800 credit person in a loan which takes 3x their income in payments, they will almost certainly default unless they marry a billionaire or something.

D’oh, this is elementary, for the obvious reason that the credit bureaus have no idea what *potential* loan you are thinking of approving them for!

Is this a matter of people “believing the computer” too much?

Interestingly, I believe income has little bearing on FICO scores, as the analysts found that (for their purposes) it was not reliably predictive.

PS: I work for Fair Isaac but have no relation to the credit scoring divison. Specific details of many things are kept proprietary secrets even to other employees.

By: Morgan Brown

Morgan Brown — Thu, 25 Oct 2007 05:32:23 +0000

wow – i would say that’s not the most confidence-inspiring email I’ve ever read.

By: Allen

Allen — Thu, 25 Oct 2007 05:15:43 +0000

anyone willing to hire a hard working, above average, hard working salesman?

By: Allen

Allen — Thu, 25 Oct 2007 05:13:05 +0000

Message to all employees from Angelo Mozilo, Chairman and CEO.

There is no question that all of us at Countrywide and all those involved in the financial services industry have been impacted by this unprecedented world wide credit crisis. Over the past 40 years, since the founding of our Company, there have been many global and domestic events that challenged the will, the tenacity, the strength and the character of the Countrywide family. Each and every time we have risen to the occasion and, in fact, we have led not only our Company but also the industry through many periods of crisis.

During this time, I have received many kind messages from employees throughout the country. I want to take this opportunity to thank all of those who have expressed their support for me personally, and to convey my deepest appreciation for all members of the Countrywide family who continue to work very hard and who have made tremendous sacrifices on behalf of our Company. I would also like to recognize Dave Sambol and the entire team who have worked tirelessly for the past several months in managing the many and varied challenges that have arisen as the result of the disruption in the credit markets.

Again, thank you for your continuing dedication to Countrywide. I commit to each and every one of you that I will do everything in my power to make certain that our management team utilizes all of its resources as we migrate through to a new and different chapter in the history of our Company and in our industry.

By: Morgan Brown

Morgan Brown — Thu, 25 Oct 2007 04:08:01 +0000

Anyone want to share that little Countrywide email with the group?

By: Jeremy M

Jeremy M — Thu, 25 Oct 2007 02:48:05 +0000

I just find it horribly ironic that the selling point for the option arms to borrowers was that they did not have to worry about negative am, because as long as the property was appreciating at a rate ahead of what the neg am was increasing, then you would still be gaining equity. Well, now we have loans that are going to be at about 150% or real value.
We are going to have a ton more foreclosures, and some wise investors will be buying these properties for 50% of the real value, and property values will continue to dip for a while, but it is better than rows of empty houses going to hell.
I said a long time ago that I figure Countrywide – at least the wholesale side – will be uner wraps by middle of December. Anybody want to place a gentleman’s wager on that?