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Somebody explain this to me!

By
Mortgage and Lending with Christensen Financial Mortgage 385907

Fortune magazine (online) headline by author Colin Barr.

"Big Check for Countrywide Exec."

Before I even began reading the article the following thought immediately popped into my mind:

WHY?

B of A will pay CW's #2 man, President David Sambol, $28 million in cash and stock if he sticks around for 3 years.

Why, why, why, why, why?

Here's the recipe to make the BIG bucks.

Offer one of the most liberal stated income programs, Fast & Easy, with low and no down payments required. Verify nothing, and allow those with scores as low as 680 and 1 day jobs to qualify. This is/was A paper supposedly, but certainly one of our current major problems.

PUSH "option arm's" as hard as possible at every opportunity.

Don't be concerned if a large percentage of your clients, taking these programs, have no understanding whatsoever of what the program entails.

These are definately a HUGE problem.

Do not waste any time monitoring or doing any due dilligence in regards to the quality of this paper.

Write lots of subprime loans!

Don't forget those TV ads for equity lines. I can see the actor now, clearly as I write this.

Get a big bowl and a huge spoon and mix this all up.

The end result;

Yuck!

Help steer your company to the brink of bankrupcy and/or failure.

Now be patient and see if a large national bank may be interested in purchasing the mess that's left.

Yes, there is!

Receive offer for $28 million.

What a Country! Only in America!

Someone explain this to me!

Please!

or really;

Don't waste your time! 

Jeff Kessler
Austin Homes, Realtors www.OwnAustin.com - Austin, TX
Broker,CLHMS,GRI

That is so ridiculous.  These guys need to get prison time not cash.

J.

 

Mar 28, 2008 01:18 AM
Anonymous
Steve Loynd
Loose tons of money, ask the government for help, pray for a suitor,bankrupt your company, get a offer to stay (due to great management so far), get a check for 27 million. What a check list can you tell me where to sign up for this job I don't know anything about it, but I sure based on the above information I couldn't do any worse..
Mar 28, 2008 01:21 AM
#2
David Keslar
Americas Largest Bank - Portsmouth, NH

Jay,

 

I'm glad to see some one else in the mortgage industry address this.  Countrywide and others have really hurt our profession.  It disgusts me to see these corporate exec's getting the big bonuses.  Personally I think they should all go to jail.  They all new what they were doing and they all new long ago that this was going to happen. 

 David

Mar 28, 2008 01:48 AM
Jay Beckingham
Christensen Financial Mortgage - Port St Lucie, FL
Seniors ROCK!

Jeff,

this goes beyond the good old boy network.

Steve,

i haven't meet you, but i still think you may be selling yourself short. you could probably do better.

David,

i wonder if they would have bought what they were selling.

there should be some part of the system which makes them return at least bonus' and stock benfits.

jay

Mar 28, 2008 03:41 AM
Benjamin Smith
Apex Appraisals & Consulting - Powder Springs, GA
Atlanta Area Appraiser
They could have hired me. For a bargain price of only $25 million I could have the place bankrupt in half the time!
Mar 28, 2008 03:55 AM
Trevor Jules
2 Blue Chip Professionals, LLC - Ellicott City, MD

If Brokers or Loan Officers had the power to do such they would be in prison and fined..but CEOs, presidents etc gets more money. Another example of the the rich getting richer; I'll scatch your back you scatch mine; whatever. This is a disgrace.

 Thanks for posting Jay. 

Mar 28, 2008 03:58 AM
Jim Crawford
Long & Foster - Fredericksburg, VA
Jim Crawford Broker Associate Fredericksburg VA
It is not about us...but them!  It is not about the persons being foreclosed upon, it is about the banks!
Mar 28, 2008 04:01 AM
Jay Beckingham
Christensen Financial Mortgage - Port St Lucie, FL
Seniors ROCK!

Benjamin,

i respect someone who gets right after it and gets the job done quickly. you certainly are the right man for the job.

Trevor,

the seem to be able to hide behind some sort of a shield.

Jim,

rewards for bad performance. this has to stop!

jay

Mar 28, 2008 04:54 AM
Joan Mirantz
Homequest Real Estate - Concord, NH
Realtor, GRI, CBR, SRES - Concord New Hampshire

Jay..we must be on the same track today....this stinks to high heaven.

Check out this link.I just wrote a post about it....the deeper they dig....the worse it gets!

Where did that buck stop again??

Good post

Mar 28, 2008 10:18 AM
asdf asdf
Dana Point, CA
HAHA... I love this post! It's so true... I could have done this for them and they wouldn't have had to pay me nearly $28 mil plus all the pay he's got the last 5 years.
Mar 28, 2008 11:42 AM
Jay Beckingham
Christensen Financial Mortgage - Port St Lucie, FL
Seniors ROCK!

Joan,

that report is saying that new century did monitor the quality, knew it was bad, and browbeat the auditors to say it was performing well.

NH history:

as a result of the banking crisis, many moons ago, the fed's closed NH's 5 largest banks all in one day. they took out the bad loans and formed 3 new and healthy banks. if i've got this right one, of the new banks was the new dartmouth bank, which was handed bank to the leadership of the old (defaulted) dartmouth bank.

go figure!

Rogan,

there's a group of us forming to take over a bank or mortgage company, run it into the ground, and then wait to be rewarded with big salaries and compensation. would you like to join?

jay

 

Mar 29, 2008 12:52 AM
-- Casey Brischle
Columbia Bank - Spokane, WA
Spokane Home Loan Mortgage Professional
Unreal! I wish i could explain it to you.  I can't believe he even gets $.  Only in America is right! 
Mar 29, 2008 03:11 AM
Jay Beckingham
Christensen Financial Mortgage - Port St Lucie, FL
Seniors ROCK!

Casey,

maybe we're being unfair. it should be more right!

Naaaaaaaaaaaaaaaaaaaaaaaaaaaaaa!!!!!

Mar 29, 2008 08:22 AM
asdf asdf
Dana Point, CA

Jay,

 Count me in!! If we time it right we migt be able to take over a company that is already on the verge of collapse, get paid some huge bonus for coming in to save them, and then after a few months we can just BK the thing and say that market forces were beyond our control and we'll all go on a vacation for all are hard work. Heck, maybe we can meet up with tanzillo on his yacht in the Med....

Mar 30, 2008 05:54 AM
Jay Beckingham
Christensen Financial Mortgage - Port St Lucie, FL
Seniors ROCK!

Rogan,

i was thinking more of taking a healthy, vibrant company and desroying it.

jay 

Mar 30, 2008 11:53 PM
J Manno
Summit Realty Group, Inc. - Newport Beach, CA

 

These guys deserve to make more money. I started my own business just like the owner of Countrywide. We both put every dime we had to do something right. I desrve every dime that is made...every dime....The government needs to be prosecuted for starting the mess of subprime mortgages under the crap o equality. This mess was started under the clinton administration to allow minorities and the poor to afford homes. Anyone who doesn't understand cleary does not understand basic economics.

Apr 01, 2008 01:50 AM
Jay Beckingham
Christensen Financial Mortgage - Port St Lucie, FL
Seniors ROCK!

J,

i'm certainly a capitalist and understand your feelings, but i think 28 million in today's world considering all the facts is not justified. i wonder what b of a's stockholders think?

i don't agree that disagreeing with your opinion means that someone does not understand basic economics, but only that they don't agree with your opinion, of which you are entitled to have and share.

jay 

Apr 01, 2008 02:14 AM