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Death of Countrywide? I hope not.....

By Larry Bettag

Mortgage and Lending with Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 NMLS ID# 158606

August 05, 2007 04:00 PM

This week has been brutal to the mortgage industry. Not only have we seen jumbo rates climb 1.125%, but we've seen the death of American Home Mortgaege. American Home was a great and veritable competitor. I've been one who never wishes harm to my competitors. As long as we're all playing fair and by the rules, I have no issues with a good competitor. Fraud and crooks are intolerable. However, good companies need to be here. Not only for the competition, but the who concept of iron sharpening iron.....

Literally....as I sign on to look at my daily blogs.....I read this blog....The Countrywide Road Show ~ or ~ Short-Sales R-US? ...It goes into short sales, but mentions the precariousness of Countrywide.....Then it refers to a post by Bryant Tutas....American Home Mortgage.....what do we do now? This post goes into great cause for concern over the viability of Countrywide Home Loans.

The general post responses is that they'll be:

1) HURTING BIG TIME - A kind of pride before the fall kind of thing because of all of the subprime loans that they did.

2) WEATHERING THE STORM OUT - This will happen because they have staying power. Even though their stock is dropping hard and fast....they've been so big that they can patch themselves up and make a go of it.

3) DENY EVERYTHING JUST LIKE AMERICAN HOME DID - Until the morning that you read on the public ticker that all trading has been suspended and that CW is no longer viable.

I want to reiterate....I want CW to succeed. They're great competitors and our company is so much better because of what we learned from CW....both from them as our correspondent partners....as well as having them as our competitors. If there were to be a demise of Countrywide, it would send our markets reeling. It would be disastrous. Further, I have a lot of FRIENDS at CW. It could be devastating to them, as well as their families....

Anyone with any real informaiton would greatly be appreciated. Thanks.....

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Charles Blumenkehl

Blue Asset Management - Wayne, NJ

there will be a shaking of the tree, and a consolidation of activity. If you lived by the sub-prime, you will....well, you finish the sentence on what you'll do!

Aug 05, 2007 04:05 PM

William Johnson

Retired - La Jolla, CA

Retired

I couldn't help but there might be sources that can help you if you really interested. It is traded publicly and you could get the SEC to advise what they know about it. Others in the banking industry may also have connections. Usually you need to know the state they are registered in to the get whatever information might be available unless you are a stock holder, there you might be able to get even more insight.

Aug 05, 2007 04:08 PM

Toby Boyce

C.G. Boyce Real Estate Co. - Delaware, OH

MBA, Delaware Ohio

I work with two CountryWide agents and both sent out an e-mail on Friday with a long press release on the viability of the company. It looked like a "company ordered" e-mail as they both had very similar tones and wording -- and they are as different as night-and-day.

I'm hoping for the best, but preparing for the worst.

Aug 05, 2007 04:09 PM

Larry Bettag

Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL

Vice-President of National Production

Thanks charles...I really hope that this is not the case. However, my company corresponds greatly to CW. So even though they're a street retail competitor, they also add a lot of correspondent value to us....We'll see won't we? But, in any event, I have time to make adjusts so that my clients don't get hosed at a closing table. thanks

Aug 05, 2007 04:09 PM

Larry Bettag

Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL

Vice-President of National Production

William....good words....I'm going to bring this up to our national regional managers tomorrow. We'll get some good info....thanks for the advice.

Aug 05, 2007 04:10 PM

Larry Bettag

Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL

Vice-President of National Production

Wow Toby...that, in and of itself, is scary...thanks for the heads up.

Aug 05, 2007 04:11 PM

delete me delete me

delete me - Dixon, CA

I like how you acknowledge the competition CW has given you has kept you on your game...that's really big of you. They have some serious problems to work out. I hope for the best also...they're a major player.

Aug 05, 2007 05:11 PM

Beth Bastian

Rosemont Financial Inc - Simi Valley, CA

Simi Valley Real Estate

I just got an email from my countrywide rep, a lot has changed over night with their guildlines. However, I still would be shocked if countrywide went down.

Aug 05, 2007 05:46 PM

Todd Murphy

Fitts Agency - Tuscaloosa, AL

I'm really hoping that Countrywide can stay the course. It would not be good for consumers if CW were to go out of business.

Aug 05, 2007 10:16 PM

Larry Bettag

Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL

Vice-President of National Production

Rondel...thanks for the words....they are great players....I'm sure they'll find a way to right their ship.

Aug 07, 2007 02:28 AM

Larry Bettag

Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL

Vice-President of National Production

Gurjit....i certainly hope you're right. Other major lenders are so diversified. I was looking at the published reports for Countrywide and 1 out of every 4 subprime loans are in default for CW. That's huge....they may be the anomolie.

Aug 07, 2007 02:30 AM

Larry Bettag

Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL

Vice-President of National Production

Beth...see my comments to Rondel....I would be shocked as well...but people felt the same about AHM too.

Aug 07, 2007 02:30 AM

Larry Bettag

Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL

Vice-President of National Production

Todd...this would be horrible if CW went down....Anyone in their right mind needs CW to stay afloat. Here's to that happening.

Aug 07, 2007 02:31 AM

Nima Rezvan CT Lender CT Senior Mortgage Broker

Nima Rezvan Prosper First Funding Corporation NMLS#110681 - Fairfield, CT

First Time Home Buyer Expert - CT FHA Loans - FHA

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

Aug 17, 2007 05:01 AM

Larry Bettag

Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL

Vice-President of National Production

Countrywide is being hit hard right now. Our company is the number #1 correspondent nationally with CW and it's no secret that they're in dire times. However, we just spoke with the principals of our company and they fully believe that through their re-organization, that they'll be able to weather the storm and eventually stabilize themselves. I hope so, b/c even as competitors we do lots of corresponding with them.

Aug 21, 2007 01:21 AM