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EVERYBODY LOVES COUNTRYWIDE!

By
Mortgage and Lending with Christensen Financial Mortgage 385907

Or at least Bank of America.

Based on the activity of blogging and comments by Active Rainer's I would have to say a large percentage of the mortgage and real estate world is either very fond of, or very interested in CW. The naysayers, however, must be very disappointed in the attempts by the mortgage industry to support CW. It appears that the markets are adjusting to care of themselves.

Bank of America invests $2B in Countrywide. Move viewed as vote of confidence in nation's largest mortgage lender." CNNMoney.com  8/23/07

It's safe to say that Bank of America has always had confidence in CW and a little more. I think it's also safe to say the Bank of America would like to welcome CW to the family, if they agree. I don't know for sure but it might be or could be in the future that CW might not be able to put off Bank of America's advances. This is not the first time this year that B of A has snuggled up to CW, or tried to.

Don't miss the fact that once again a large financially secure, responsible institution is investing in and supporting CW. I guess they're not likely to belly up any time soon.

CW's stock's up, Bank of America's stock is up, everybody's happy.  

I'm happy that the market is correcting itself whithout a great deal of Fed involvement.

Oh and by the way, if you're counting on a Fed rate reduction in September, I'd be careful because I don't think it's going to happen, although some parts of the market are already adjusting as if it will.  

Comments (11)

Brian Schulman
Coldwell Banker Residential Brokerage, Lancaster PA - Lancaster, PA
Lancaster County PA RealEstate Expert 717-951-5552
Jay, your post reminds me of a comment by Donald Trump during a time of financial trouble.  He said that he would survive, because if you're a big enough debtor, you become a partner of your creditors, and they need to keep you afloat.
Aug 23, 2007 12:00 AM
DDR Realty
DDR Realty - Newburgh, NY
Orange County NY
I definitely seems likes the big boys in the lending industry do not want CW to go under.
Aug 23, 2007 01:54 AM
Tom Cunningham
Agent Support 360 - Austin, TX

I think if you dig a little deeper, you'll find that everyone (realtors, mortgage brokers, correspondents and customers with marginal credit) has thus far loved CW, because thus far CW has been willing to close a lot of marginal loans that no body else would.

A large part of this collapse is due to the lack of a national definition for Alt A. underwriting guideline standards (Countrywide, Aurora, First Magnus et al.) and now that the cat is out of the bag, Wall Street is going to be unwilling to provide liquidity unless they know exactly what they're getting. 

Once all of those admirers realize that the ease of Alt A. and reduced and light doc. is truly a thing of the past and CW has suspended all the no-brainer programs like everyone else, it will be interesting to see just how unconditional that love really is. 

Now that CW ain't gonna be "fast and easy" anymore and she has to be a good girl, I guess we'll see who really who really loves her and who was just treating her like a "booty call".

 

 

Aug 23, 2007 02:21 AM
Jay Beckingham
Christensen Financial Mortgage - Port St Lucie, FL
Seniors ROCK!

Brian,

i agree cw will live on. there are other interests involed.

jay

Cheryl,

as large as they are, they have helped many.

jay

Derrick there will be changes, but they will live on.

jay

Tom

i don't believe wall street will ever truly understand what they are buying in regards to mortgages, other than the truly lilly white agency stuff. alt a is still very much alive and will live on in it's original state not what it has evolved into.

jay 

Aug 23, 2007 03:45 AM
Joan Mirantz
Homequest Real Estate - Concord, NH
Realtor, GRI, CBR, SRES - Concord New Hampshire

I am glad ...because they are funding a closing I have on monday

I am glad... cause a friend works for them

I worry about at what price?

Aug 23, 2007 02:49 PM
Brian Brady
Matthews Capital Markets - Tampa, FL
858-699-4590

I'm happy that the market is correcting itself whithout a great deal of Fed involvement

I am happy CFC is out of the near-term woods.  It certainly looks like the drama I laid out on August 6, 2007 is playing to script.

The Fed was most certainly involved, though.  BofA borrowed from the discount window yesterday and has a conversion price of $18 - this gives them a chance to peek under the hood and kick the tires before the big offer next year.

Aug 23, 2007 04:21 PM
Jay Beckingham
Christensen Financial Mortgage - Port St Lucie, FL
Seniors ROCK!

Joan,

i glad to hear about your closing and your friend, but cw will feel some more pain. they were heavy into stated loans and pushed hard for option arms, and were successful. they also had a subprime option. they need to restructure parts of their organization and their philosophy's. 

jay

Brian,

in the bigger picture i wouldn't consider activity related to the use of the discount window as a source of funds to be of major significance. i would consider it to be helpful.

jay 

 

Aug 23, 2007 11:15 PM
Kerry Constantine
Power Brokers Real Estate - Fort Myers, FL

Hi Jay,

Our real estate market has already started to correct itself (number of listings are down, activity is up, and we're coming into season). The lending fallout is the tail end of this vicious cycle. I love CW, or anyone else that can belly up at closing. Cheers!  

 

Aug 24, 2007 01:08 PM
Tom Cunningham
Agent Support 360 - Austin, TX

"I love CW, or anyone else that can belly up at closing."

 

Thank you for making my point.

Aug 24, 2007 01:20 PM
Jay Beckingham
Christensen Financial Mortgage - Port St Lucie, FL
Seniors ROCK!

Kerry,

i really believe that more than ever the loan officers need to do their job and stay on top of the lenders. so that you don't have to worry about closings being funded.

jay 

Aug 25, 2007 01:34 AM
Jay Beckingham
Christensen Financial Mortgage - Port St Lucie, FL
Seniors ROCK!

Tom.

i don't see Kerry making your point or anyone else for that matter. i don't have any problems finding well priced alt a products, nor do i expect to.

jay 

 

Aug 25, 2007 01:38 AM