I personally expect Countrywide to survive.  Being in 'Corporate America" for years, I would fully expect restructuring and cost cutting measures such as closing some offices and reducing staff. (merging 'local' brancheswould make sense for example, as the overall overhead declines.  The only issue is negotiating out of building leases - but at minimum, the electric is off).

Rob: I would give it a toss up. Countrywide may well survive as a leaner and meaner entity--or at some point, be bought out by the likes of Bank of America, as mentioned in the email. 

I'm going to park here and see if you ferret out any information.  BofA is smart enough to know that purchasing Countrywide, if the opportunity presents itself, will position it to do very very well when the shakeout has settled.

I heard somethng very similar over the weekend.  The theory was that B of A would love to own Countrywide's servicing business.  We'll just have to wait and see how this shakes out.

Leigh: I will be making some calls today to see if there is any anecdotal evidence to support this claim. Perhaps you have heard of similar layoffs in your market? 

Marlene: Once the trash loans have washed out, Countrywide's servicing portfolio will have substantial value. It would be a plum for Bank of America.

B of A's underlying interest in CW lies with their bank. Current laws prohibit a bank form having more than x% (I believe 10%, but don't quote me) of total deposits. BofA is nearing that threshold. By acquiring CW's banking entity, which has only a small % of total deposits, they gain needed room under the cap.

They didn't infuse CW with a boatload of cash last month for nothing. The pundits missed this one. Now when they take over CW, it's as a knight to the rescue, where before it would have been seen as growing the monopoly. The regulators will have no choice but to approve this.

Wow!  This is news to me.  I know several people who work for Countrywide in my area.  I will have to see what I can find out. Hmmm....

Bank of America Makes Investment in Countrywide Financial....invest $2 billion in the form of a non-voting convertible preferred security yielding 7.25 percent annually. The security can be converted into common stock at $18 per share.

Implod-o-meter has a news bulletin of a 7,000 to 10,000 meployee layoff, but the link to the news does not work, nor can I find any other published info describing this as happening.

here is the link to nowhere....

http://ml-implode.com/staticnews/2007-09-04_CountrywideMayTrimUpTo10000Workers.html

Implod-o-meter has a news bulletin of a 7,000 to 10,000 meployee layoff, but the link to the news does not work, nor can I find any other published info describing this as happening.

here is the link to nowhere....

http://ml-implode.com/staticnews/2007-09-04_CountrywideMayTrimUpTo10000Workers.html

Implod-o-meter has a news bulletin of a 7,000 to 10,000 meployee layoff, but the link to the news does not work, nor can I find any other published info describing this as happening.

here is the link to nowhere....

http://ml-implode.com/staticnews/2007-09-04_CountrywideMayTrimUpTo10000Workers.html

Implod-o-meter has a news bulletin of a 7,000 to 10,000 meployee layoff, but the link to the news does not work, nor can I find any other published info describing this as happening.

here is the link to nowhere....

http://ml-implode.com/staticnews/2007-09-04_CountrywideMayTrimUpTo10000Workers.html

Implod-o-meter has a news bulletin of a 7,000 to 10,000 meployee layoff, but the link to the news does not work, nor can I find any other published info describing this as happening.

here is the link to nowhere....

http://ml-implode.com/staticnews/2007-09-04_CountrywideMayTrimUpTo10000Workers.html

Implod-o-meter has a news bulletin of a 7,000 to 10,000 meployee layoff, but the link to the news does not work, nor can I find any other published info describing this as happening.

here is the link to nowhere....

http://ml-implode.com/staticnews/2007-09-04_CountrywideMayTrimUpTo10000Workers.html

Rumors in our area of Florida are that Countrywide will fold by the end of the year and Bank of America will rejoice in the loss of a big competitor.  Is BofA stupid? I think not.

Darren , dude....how'd ya manage 7 repeat comments?  KUDOS.

Roberta,

It looked like the Countrywide situation had settled a little, but this secret email heats up the speculation again. They are definitely in trouble and Bank of America is already a major shareholder in the company and could actually take it over. That would then keep the lender alive and avoid a federal bailout. 

Bob:"B of A's underlying interest in CW lies with their bank. Current laws prohibit a bank form having more than x% (I believe 10%, but don't quote me) of total deposits. BofA is nearing that threshold. By acquiring CW's banking entity, which has only a small % of total deposits, they gain needed room under the cap. "

Actually BofA has no use for the bank for the exact reason mentioned, the CEO has already said the bank portion of Countrywide would put them over regulatory limits. The only thing of any value to BofA would be the servicing portfolio, BofA can already originate loans just fine and has more than enough locations, Countrywide isnt nearly as valuable as people think. BofA will end up with the servicing side, and a grab bag of others will pick over the carcass for the rest. I bet CFC goes under and the remnants are bought for under $9 billion.

I have not heard of any layoffs yet in my area and my team works with 3 Countrywide loan officers in different areas of Sacramento, but I will check today.  I did hear a rumor yesterday however, that there could be some consolidating of offices in the area, which makes sense as another cost cutting measure for Countrywide.

I am an underwriter on medical leave of absence from Full Spectrum Lending with Countrywide and was informed about three weeks ago that my job, along with many others, had been eliminated - and that when my MLOA is concluded, there may not be a job for me in another department. Last Friday, FSL released about 25 contract underwriters who had just been hired.  I was informed this morning that 6 more on our floor in Texas were laid off today and 1900 laid off in Plano, TX, CMD.

Businessweek is now substantiating the rumor that their could be up to 10000 layoffs. Thats 1 in 6 employees. HUGE.

Countrywide did in fact have a large layoff today.  The estimated employees to be laid off is between 7 and 10 thousand....

 I wonder how Angelo Mozillo is doing with his lovely signing bonus that he received for delaying retirement.  More than likely a lot better than the individuals who will now be flooding a decimated Mortgage Industry job market.

People need to understand that Countrywide laying off that many people, or worst case, closing, is not good news for mortgage originators.  It will cause a worldwide perception of "I told you so", which will then further slow down recovery.  Also, if the market continues to get flooded with LO's, available for hire, you will see more talent than jobs.  This puts the companies that are left standing in the position of "tweaking" your compensation package.  You will see max bps income opprtunities on unit and volume production go down. Why? Because they can!

I've spent quite a bit of time around numerous corporate machines in my career, and not all in the lending industry, and heres how it works: when compensating retail sales people, decrease income opportunity when you can, increase income opportunity when you HAVE TO.  Guess which one we are heading toward?

Bob: BINGO!

Tracy: Thank you! 

Arina: A good investment for BofA--we hope. 

Darren: I know it's not your fault (and I tried to delete the excess posts), but I couldn't help but think of P-P-Porky Pig....

Sharon: Bank of America is very, very smart. 

Rob: See above!

Esko: True....

Mikey: You propose an interesting outcome.

Lori: Let us know what you hear. 

Karen: Take care of yourself and I hope you have plenty of leave coming. Yours is probably one of the first personal reports....

Darren: Thanks! It is indeed HUGE. 

Former Countrywide Employee: Too bad the parachutes weren't handed further down.

Darren: You appear to have some experience with these things--and perhaps have some survival suggestions???

Roberta,

My only advise to everyone in sales, is the same as it has always been, whether you are flying high, or being dragged to the ground, kicking and screaming: Tell the truth, work your butt off, tell the truth, network with your warm market (previous customers first, colleagues and friends next), tell the truth, offer a product that is in the best interest of your client and not your pocket, oh and last, but not least, TELL THE TRUTH.

Darren:

Oh yeah...and tell the truth!  Seriously, you offer some great advice, Thanks!

900 more layoffs announced today--mike

Michael: OUCH!

I work for CFC { LOAN OFFICER } and yes they did layoff 900, not too sure if in sales though. I know they laid off some funders and compliance folks. It is not over unfortunately. Business is way down. I have been with the company for 9 yrs and never seen it like this. YIKES 

Originations will suffer but with me being in the servicing end, I know I'm secure.  And since the turn of time it's always one company or another that is going to take us over.  Hogwash.  Let's look at this thread in a year and see who is REALLY Nostradamus Jr.  My better half has been at Wells for 18 years, not months, years, and we can't count how many numerous times over the past 2 years Wells were going to buy CHL out.  It just seems that there are too many people with idle time who come up with silly rumors.  For the underwriters and sales people, I hope you were banking your big 'ol comission checks when the market was F-A-T and not living beyond your means.

I'm an underwriter who's been laid off and have not been able to find comparable work for 12 mos.  I saw this coming 2 years ago.  Every u/w who has been around awhile like me (12 years in the business) thought how long will these investors continue to buy these risky POS loans.  We were just giving the greedy investors and the eager american consumers what they were demanding!  I told you so...

if you guys really want to know whats going on send me a private message. i work at the CW in calabasas as a team manager.

DAN: It appears the Countrywide layoffs are becoming a larger problem....

job secure: Consider the rumors within the context of news and the market. Servicing should be secure--unless it is sold off. These are interesting times--to say the least.

Brunhilda:  There are other industries who need good underwriters. Insurance, perhaps?

cwinsider: No way to send you a private message --and www.cwinsider.com is a secure site.

Roberta- I think CW is going down fast .. before the end of the year for sure.. and maybe sooner..  I think Mikey is correct BofA will take what they need and sell off the rest.. Mozilo has already sold off enough stock to live well for the rest of his life.. he's just marking time..

Kaye: Many are probably wondering about Mozilo's ongoing stock sell-off--and I am sure it will be carefully examined.  For some reason,  farfetched comparisons to Enron keep bugging me.

Kaye: Many are probably wondering about Mozilo's ongoing stock sell-off--and I am sure it will be carefully examined.  For some reason,  farfetched comparisons to Enron keep bugging me.

I am wondering if anyone knows when to expect the next round of layoffs?  I am a current loan officer in Texas and have already been cut from two other mortgage co's in just over a year.  I have a young daughter and fear the thousands like myself all flooding the job market at the same time.  I have been told time and again by management that this was not going to happen and low and behold.........10-20k will indeed be cut, I am tired of being lied to and misled.  Any knowledge or advice would be appreciated. 

worried employee: Why not see if you can transfer to the Loss Mitigation department of your employer--if they have one.  I would take a proactive stance if at all possible. Think about the areas in this business that will be busiest in the months ahead....

Our thoughts and good wishes are with you. 

Check out what the countrywide employees have to say on http://www.excwinsider.com

Thanks: I have bookmarked the site and will check back for news.

Overtime Class Action Investigation | Countrywide Financial Mortgage Loan Employees

If you were employed by Countrywide Financial as a mortgage loan officer, loan processor, loan originator, or loan consultant and did not receive earned wages or overtime pay, you might want to contact some overtime class action attorneys investigating unpaid wage and overtime issues.

<a href="http://www.classactionconnect.com/?q=node/713" title="Countrywide Financial Employee? Not Paid Wages or Overtime? Contact An Overtime Class Action Attorney">Report Unpaid Wages and Overtime</a>

Overtime Class Action Investigation | Countrywide Financial Mortgage Loan Employees

If you were employed by Countrywide Financial as a mortgage loan officer, loan processor, loan originator, or loan consultant and did not receive earned wages or overtime pay, you might want to contact some overtime class action attorneys investigating unpaid wage and overtime issues.

-Report Unpaid Wages and Overtime-

Employee Rights Activist: Perhaps the unpaid employee should notify Countrywide first? I cannot imagine Countrywide not paying their employees.

Actually I was a loan officer for countrywide and we may not have been paid accurately for our overtime.  I have contacted a labor law attorney and it appears that once they revised our compensation (one of the many, many times) to not "guarantee" our minimum monthly pay any longer if we did not meet certain "criteria," the overtime may have not been compensated correctly.  Some VERY shady practices seem to have occurred regarding our pay and other HR issues during the past 5-6 months especially.  Hate to be the bearer of bad news but anyone outside of California (maybe some inside Cali as well) that worked for CW indeed may have a reason to complain.  Also an FYI; a class action suit was successfully settled in Cali for some 500 or so loan officers regarding overtime wages back in 05 or 06, check it out on Wikepedia for additional info if you would like.

Speaking of Countrywide trying to survive the current implosion they Wrongfully Terminated me and now trying to get their unemployment back they paid me. Im already working and I cant get AWAY from these guys!!!

-Help!!!!!!!!!

Help--I wish I could.