Comments on: Rumor Mill: Countrywide Specialty Lending Done??

By: l

Tue, 11 Mar 2008 13:07:42 +0000

Insider info:
I can confirm this. The EA product is being taken off the market, and in TX the layoff’s are going to start happening Thursday March 13, 2008 at the earliest.

By: t-cat

t-cat — Fri, 16 Nov 2007 18:39:51 +0000

1.Correction: retail employees do not get the same compensation when they pass a loan to SL. They only retain the .50 bps.but not any overage that could have been sold. So, the compensation was up to 2 points less(CW has a 2 % overage cap, brokers have no 2 pt cap,by the way).The SL rep would have that area available for his profit.

2. Retail reps are denied sub-prime products by design to protect the client from being steered to a more profitable , higher rate sub-prime loan , when they actually qualify with an FHA, House America,VA or EA loan on the prime side.The separation is typically in place with all companies that offer both Sub,Alt-A,and Prime. They’ll either not allow co-mingling by making divisions (as CW has)or will make them entirely separate companies as many others have.Determining compensation to deter that steering issue is another part of the problem, as “A” loans pay far less than “risk” loans.This format protects the client, and is a good thing. Don’t forget the ” Specialty” in the title, these loans required specific product knowledge and a certain daily “mind-set to perform. There are 2 different modes of selling regarding “A” or Sub-P and I have done both.

3. What’s wrong with profit? Isn’t that what capitalizm is all about? At least CW has Caps. Please, point out a “candystriper” mortgage company for me, or any business that tries to minimize profit, duh. You present the word “profit” as if it were a dirty word.The loans were priced higher at SL due to risk, not in order to compensate a tier of employees. Tiers of employees are supposed to get paid, that happens automatically in any business, but with risk loans , your only opportunity for profit nowadays is on the front since they are non-profitable on the back.With “A” loans you can portfolio the loan and profit from the loan over it’s span.

4. When CW and BOA merge they will be a powerhouse.

5. Golly, if you were still at a sub-prime lender (or division) this late in the game, you probably aren’t that sharp anyway. You should’ve had your stuff in a box since last June

By: t-cat

t-cat — Fri, 16 Nov 2007 18:03:23 +0000

And yes, a boss should really fire you in person.

By: t-cat

t-cat — Fri, 16 Nov 2007 18:01:31 +0000

1.The retail reps were not compensated the same for loans passed to SL. They only got the basis points, but no overage.That’s up to 2 points less due to CW’s 2 point profit cap in retail.Brokers have no cap .The SL rep would earn that income. Yes, you pay more on a sub-prime loan , because you are high-risk.The better you pay your current bills , the better the deal you get on your next purchase ( mortgage, auto loan,auto insurance, etc.). You pay more , because you may not pay at all.

2. If you stayed in ANY sub-prime department this late in the game, you probably weren’t that sharp , anyway.

3.The reason retail did not have access to sub-prime is so they couldn’t steer a client to sub-prime when the client could actually qualify under FHA, House America,or Alt-A programs, etc. at a better rate.It was designed that way to protect the client.

4. What’s wrong with profit when it’s all disclosed before any signing takes place?

By: Aaron

Aaron — Thu, 15 Nov 2007 18:46:56 +0000

They were shriveling up any way. They closed the doors in the SLC branch yesterday. It was the perfect scenario you as a sub-prime part of CW would go and market all of the CW retail people. You gave them the same commission they would get on any deal and you would just take it over work with their business partner as an associate of the referring HLC and all was right in the world. Except of course Countrywide wanting to make their profit would of course price these higher than most deals because from the CEO down part of the profit of the loan would be a part of 8 peoples bonus pool, not to mention now 2 loan officers. Never really understood why they didn’t just let the retail people have access to the subprime and just pay one loan representative. Anyways last December they stopped doing old school sub prime, by august they were only doing ea l,ll,lll’s which means that the retail people had the same arsenal and of course the applications drying up didn’t help. Hard to bottom feed when nothing is coming to the bottom.

By: EXCW

EXCW — Thu, 15 Nov 2007 18:29:35 +0000

Yep, its true. SLD closed yesterday, and it was as bad as they said it was. National conf. call with no “leaders” present. Cold and Calculating, while they still had us out in the field asking for business.

There are just no products for this division left to sell. CW is as close to the edge as I have ever seen them.

By: StacyP

StacyP — Thu, 15 Nov 2007 18:20:45 +0000

YES- it’s true. Yesterday, CW hacked the whole division, involving offices across the country. There is a pretty good thread going on the ML Implode Forum. In true CW form, the whole thing was handled very poorly, minimum compensation given, and former FSL Managers were completely absent during the whole sordid conference call. These people have zero integrity, that is for sure.

Not to sound like a bitter ex-employee, but this company will reap what they have sown. They have it coming, big time. There is also a great blog forum that I understand is back online (www.excwinsider.com)- I think is the address.