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Is Countrywide the next to fall? Countrywide plunges on bankruptcy fear

I found this interesting.

Is Countrywide Home Loans the next lender to take a fall in the mortgage business? There are a lot of things flying around out there about Countrywide and they are not so good things

Countrywide plunges on bankruptcy fear

http://money.aol.com/news/articles/_a/countrywide-plunges-on-bankruptcy-fear/n20070815182409990024

Also Today on Bloomberg:

Credit crunch is huffing and puffing and may blow her new house down. Countrywide, Mortgage Lender Bond Risk Rises on Default Fears
By Shannon D. Harrington and Hamish Risk Aug. 15 (Bloomberg) -- The risk of owning the bonds of mortgage lenders and insurers rose after a Merrill Lynch & Co. analyst raised the possibility that the biggest U.S. lender, Countrywide Financial Corp., could be forced into bankruptcy. Credit-default swaps on Countrywide rose to the highest in at least four years after Merrill Lynch analyst Kenneth Bruce said a loss of access to short-term financing could lead to an ``effective insolvency.'' Credit-default swaps are used by investors to speculate on a company's ability to repay its debt.

Posted by Connecticut FHA LOANS,CT VA Loans, CHFA CT First Time Home Buyer:CT CHFA Loan on 08/15/2007 07:22 PM

Comments (11)

mortgages, countrywide, connecticut, home loans, ct mortgages, ct home loans, coutrywide home loans, realtors, ct realtors

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11 Comments on Is Countrywide the next to fall? Countrywide plunges on bankruptcy fear

AUG

2007

I hope not. Countrywide is the only lender that has not failed me in any way. A great place to check is ml-implode.com

This site tracks the mortgage industry casualties.

I'm not going to say I told you so...BUT...well, google "countrywide in trouble".

Hmm this rumor has been around for several days now. I heard some of their loans were a bit sketchy and I wondered how this would all end! I hope for the sake of economy it is only a rumor!

Wow Brioan, I just googled Countrywide and yup there is a lot of negative stuff on the web, this is how it all started with American Home Mortgage and we see what happened there.

This is not a surprise, Countrywide issued a ton of sub-prime loans, except for the fact that they are so large. Their CEO said last week that he "hopes" they can hang in there. I think that this will really have a negative affect on consumer confidence since they are such a household name. I hope they can hang in there.

AUG

2007

The news is not getting any better today!

http://biz.yahoo.com/ap/070816/wall_street.html?.v=16

why would anyone who has access to their financial info lend them $11.5B, as they just did, if they are going BK?

Great question Jay....Next month we will be reading the fallout from that and want the feds to help...What a joke... I am so glad I left the BIG name Lenders and went with a smaller national lender who is privately owned with no debt and no stock holders to please!

AUG

2007

Dear Real Estate Professionals,

News about the current state of the mortgage industry can be unsettling for those of us who make our living in this business. This challenging time has brought about greater than usual media coverage of our sector, including coverage about Countrywide.

With all the information that's being distributed, I wanted to take a moment to personally update you on what's going on at Countrywide.

• We have supplemented our existing liquidity options by infusing an additional $11.5 billion in to our operation through a syndicate of 40 of the world's largest banks. More than 70 percent of this facility has an existing term of greater than four years.

• We announced our strategy to fund a significant portion of loans through Countrywide Bank, which has approximately $100 billion in assets. Today, we fund approximately 70 percent of our loans through Countrywide Bank, and expect that nearly all of our loan volume will be funded through the bank by the end of September.

• We expect that approximately 90 percent of the loans we originate will be eligible for funding through Countrywide Bank or the Government Sponsored Entities (Fannie Mae, Freddie Mac).

• Just this week, we increased our product options for fully documented Jumbo loans.

I want to let you know that while this industry turmoil may continue for some time, Countrywide is here to assist you in and meet the home loan needs of your customers.

While the current industry news can be unsettling, know that I am here, backed by Countrywide, to meet your mortgage lending needs. Feel free to contact me directly by phone or email.

Sincerely,

Nima Rezvan

Home Loan Consultant

Countrywide Home Loans

Thanks for the update Nima, I hope that you are right because countrywide is a big player in our economy. With all the negative stuff in the media it has to hurt the trust factor in countrywide and the consumer confidence. Anyone who has a loan in process with any lender with negative press has to be concerned.

I am glad to be out of the large mortgage lender world, too much corp. bs and obligations too meet for their stock holders and high rates to pad everyone up the food chains pockets...

Leo Namiot

www.LeoLends.com

Leo

My latest blog has a more reasonable explanation of what is occurring with CW. Take a look at Active Rainers Fuel the Media Fire: Countrywide is Failing!

I've researched this matter extensively....I hope you like what I've written. No spin.

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