That's how the email ends. The exact same email I have received over and over again, seemingly written by individual loan officers. In truth, it's a propaganda piece sent out by the corporate office straight to the front lines. The Loan Officers. They are supposed to cut and paste the body of words and distribute them to anyone and everyone.

Somehow, someone thinks that this email will make everything all right. Blind faith coupled with propaganda has never made anything all right.

I have seen plenty of these emails in my inbox. I have glazed past them knowing the person sending them didn't write them. I recognize them for what they are and haven't thought they were worth wasting any time on.

I like Countrywide. As a wholesale lender I never had much of a problem with them. I wish them the best of luck. I certainly don't want them to fail.

I also like Nima. He's a well respected prolific blogger and Countrywide Loan Officer in Norwalk, CT. When Nima posted the same exact email that so many others have sent, (Countrywide Home Loans: The Real Story), I somehow felt a little let down.

As soon as the post hit the web, Nima received a wave of comment support. Maybe these supporters missed the onslaught of email spam from so many other CW Loan Officers? Oh, to be so lucky. But still, comment after comment of good wishes gets a little boring.

Then on Comment Number 25, Tony Gallegos dropped a bomb of logic. It was more of a post all unto itself. It was not an attack on Nima but more a logical deciphering, point by point, of the pseudo email "fireside chat". Wow! I decided to include it in it's entirety below for a number of reasons.

1. It's not an attack of Nima. Tony even states that right at the top.
2. Tony is a highly educated mortgage professional. He is speaking not from emotion but cool rational thought.
3. The points made are so well thought out, they should be seen by as many people as possible.
4. Being buried in the comment section of a single post is unworthy of this body of text.
5. Somehow the comment stream has morphed into a verbal fight between those that bash CW and those that support it. The entire thread may be deleted at anytime.

So this post is meant to salvage Tony's Comment and bring light to his rational argument. Read the email, read the comments, read Brian Brady's post. Don't get caught in the blame game. Don't get caught up in the emotion. But do read and understand Tony's comment.

Nima - Please don't take this as an attack on you, it is not. You are very highly regarded on this platform and one of your vendors (Peter), plus referral partners obviously hold you in high esteem. Yet you are taking CFC's public statements as gospel as your post is verbatim to the statement Angelo released to all Countrywide employees and the public. I have seen copies of very similar statements emailed out by AHM, HomeBanc and Charter this year (even within days of shutting down.

Yes, I agree the media can sensationalize a story and to a certain extent this has happened with CFC. I truly don't believe the mortgage business is imploding. We are still making good loans today and will in the future. Did the industry go too far with a certain segment of the industry... yes it did. Is the media making too much of what is happening... I think so.

That said, it is foolhardy not to admit CFC is having major problems. Back in early April, Brian Brady told me he had analyzed the CFC financial's and predicted they were going to be experiencing major problems over the next 12 months. He also predicted the Fed stepping in and increasing liquidity to mitigate CFC's cash crunch and brokering the sale of CFC to a financially stable banker/lender.

Whatever happens, CFC, will either be a much smaller company 12 months from now or more than likely acquired.

In the mean time, I highly suggest Realtors and brokers follow the advice given by Brian Brady in his recently featured post.

I do want to briefly touch on each of the points Mozilo made in your post above.

"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."

Why would a company need to suddenly borrow $11.5 billion in high cost loans to supplement their operation if they were on solid financial footing? They are borrowing high cost money to survive from many of the very lenders/banks they have competed against for years. Over $3 billion of the $11.5 is due in less than 12 months. The $2 billion pool they could not sell recently almost put them under. What will happen when the $3 billion comes due and payable in less than 12 months and their LOC's are tapped? Additionally the borrowing costs of the $11.5 billion exceed the projected ROI Countrywide will receive on the money. Additionally, with the $3 billion that will be due in 12 months or less, plus the $2 billion pool of unsold sub-prime loans, they will have over $5 billion plus interest coming due within the next year. With Moody's Investors Service downgrading Countrywide's senior debt rating to "Baa3" from "A3," their cost of borrowing commercially is substantially higher. While the open discount window and the extension of federal loans from 1-30 days will alleviate some pressure on CFC, the amount they can borrow from the DOT is limited by their asset base. Bottom line, according to most analyst, CFC has almost fully tapped their LOC's.

"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."

While Countrywide Bank has $100 billion in assets, that doesn't necessarily mean the assets are liquid (or valued correctly). How much of their assets are in MBS pools very similar to the recent $2 billion sub-prime pool they chose not to sell at a major discount. If Countrywide Bank had the financial strength being inferred by Angelo, why did Countrywide need to "syndicate" the $11.5 billion from other banks? Additionally. Countrywide Bank recently changed its Charter from a National Bank because it could not meet the reserve requirements mandated of Federally chartered banks. Thus they are in all practicality an S & L of days gone by. In a nutshell, even Countrywide bank is having liquidity problems. Countrywide Bank is no B of A, Chase, Wachovia, Wells nor even a Suntrust or Wamu.

"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)."

Okay, that means Countrywide is effectively reducing their volume by approximately 50%. Additionally, the remaining 50% has historically been their least profitable product. The only profitable prime product left is govie loans. Do you think you are going to fund enough govie business to continue making a profit, much less service the additional debt just incurred, plus come up with another $5 billion? Countrywide Bank had trouble even meeting the reserve requirements of a federally chartered bank...where's the beef?

Additionally, most of CFC's volume comes through its wholesale and correspondent channel. With plans to curtail and some predict shut down (???), that would leave only the retail channel. Subsequently, CFC has never been the number one Retail lender in the country during a calendar year. On top of that. the speciality product that accounted for 50% of CFC volume has been curtailed or eliminated by the marketplace...that leaves just fannie, freddie and govies.

What will make Countrywide special and differentiate them from the crowd if all they can do is vanilla product?

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

There is NO market for JUMBO paper. There are no pricing screens to hypothecate. More importantly, CFC can not survive without a secondary market. With a cash strapped mortgage company and bank...where is the sustainability of a marketable Jumbo product? Again, what will make Countrywide different and how will they survive.

Brian has crunched numbers, the CFC assets only support a stock price of $5 to $7 a share...the financial fundamentals are not there for Countrywide. 99.99% of the AR members take no joy in what is happening to the families that will be impacted by CFC woes. Yes, Countrywide families will be touched if CW goes into BK. If that happens, a good majority of the workforce will be absorbed by the remaining players. Yet, there will still be families negatively affected. Brian spoke of the Stockdale Paradox.

"You must never confuse faith that you will prevail in the end - which you can never afford to lose - with the discipline to confront the most brutal facts of your current reality, whatever they might be."

Don't be one of the blind optimists Admiral Stockdale admonishes. It is commendable the loyalty you exhibit towards CW, however you have your family to think of first and foremost...Mozilo I'm sure has taken care of his. Look at the situation objectively. You will thrive at any organization lucky enough to have you on their team.

You are a mortgage man and mortgage people if anything are very adapt at adapting (is that a double negative?). Remember it is you and not CW that makes you "The Mortgage Man."

Even if CFC flounders (only time will tell), the remaining strong players will pick-up the slack.

Again Nima...you will be fine. I wish you and the many families at CFC only the best.

Bruce Springsteen once said, "Blind faith in our Leaders will get you killed". While he was referring to our political leaders during times of war I can't help but think the same thought applies to the corporate world. Loyalty is an admirable trait rarely found in employees. Nima. I'd be proud to have you as one of my employees. Blind faith is not.

I agree. Nima, you will be fine. And I certainly hope CW comes out fine. They may be battered and bruised but as they say, "What doesn't kill you, makes you stronger" right?