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The World's Biggest Lender: The Universal Bank of Ameriwide

By Mike Tullio

Mortgage and Lending with Guaranteed Rate NMLS# 2611 NMLS #208860

January 11, 2008 12:33 AM

python So it's really going to happen: http://www.msnbc.msn.com/id/22606833/

It's funny. I've seen quite a few posts about this in the past week. Rumors of CW going BK. Rebuttals from the PR spin doctors at Countrywide. Every prediction under the sun from media pundits to the fine folks in AR. And here we are. The new Microsoft of the lending world. What does this mean for our industry?

What it does for the moment is bring relief. The financial world let out a collective sigh and BOA is proclaimed hero of the day. The world keeps turning.

But obviously it's no easy task for the python to swallow this cow. There are a lot of bones and sharp edges that need to be digested. Any predictions on how this will play itself out? I'd love to hear your prognostications! And are you planning on sending any loans to CW anytime soon?

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Dan Forbes

Bradenton, FL

Mike, as Mr. Anderson would say, "It was inevitable." Country Wide pushed some many loans to people who really weren't qualified (in my humble opinion),

Jan 11, 2008 09:25 PM

Mike Tullio

Guaranteed Rate NMLS# 2611 - Sarasota, FL

VP of Mortgage Lending

Hey Dan. Actually, Agent Smith said that to Neo, but it still rings true. "Do you hear that Mr. Anderson? That's the sound of inevitability. The sound of your death." It's such a debate right now. Is it Countrywide's fault, or is it the fault of investors on the secondary market who had a huge appetite for these types of loan products? Hard to say. But we are rapidly moving toward a full documentation world and I wouldn't be surprised if all stated producs disappear by the end of the year.

Andrew. Thanks for catching the subtlety of my graphic. I couldn't agree with you more about the move to consolidate. Someone threw out a random stat at me playing tennis last night and said that B of A will now take in 10% of all of the bank deposits in the world. Wow.

Jan 14, 2008 12:19 AM

Ron Avneri

Seattle, WA

Financial Professional

Will B of A continue it's previously haulted wholesale division with Countrywide OR will it just keep the portfolio and lay everyone at Countrywide off. Hmmm well assuming that B of A is buying them for $4 Billion and They are worth $12 billion, means that they have room for $8 Billion in losses. Let's see how the banks come out with earnings this week. It might be time to release the python my friend.

Jan 14, 2008 03:03 AM

Kevin Hancock

Evergreen Home Loans NMLS 3182 - Poulsbo, WA

The Hancock Mortgage Team

Tough to say how it will all shake out, but my guess is that in the long run it won't be a benefit for consumers. There is going to be fewer choices in the future, and this won't be the last mega-merger we see in the lending industry. I'm hearing rumbles of more to come.

Jan 14, 2008 09:50 AM

Ron. So interesting to get a Wachovia AE's perspective on this deal. I'm thinking BOA is getting quite a bargain and they are going to strategically clean some house in Q3. Like you said, earnings week should be rather revealing. Thanks for the post!

Kevin. Isn't that the truth? The consumer is the biggest loser here. I am seeing big trouble on the wholesale lending side of things and a disturbing trend of underwriters who are looking for reasons to say no = less loans available = more foreclosures. Any predictions on the next mega-merger?

Jan 14, 2008 10:18 AM

No problem. I think they are definitely going to clean house. I saw a lot of that go down when Wachovia bought us (World Savings).

Jan 15, 2008 04:49 AM

Ron. Aha! You were on the Pick-a-Pay side of things, huh? Yeah, I bet that was very interesting being an insider on that merger. More to come, no doubt.

Jan 15, 2008 07:35 AM

Don Draughn - Mortgage Professional

High Point, NC

I think it is a tremendous thing. I send many loans to CW. Actually, CW is the first place I look. Have you seen their rates?

Jan 15, 2008 07:36 AM

Don. Yeah, pretty sick rates on the wholesale side. 5.625% paying 1.500 ysp. If you can get them to put their stamp of approval on your appraisal. Big IF. Have you had any issues with them lately? Glad you posted!

Jan 15, 2008 07:41 AM

Mike,

It's typical merger news. We don't need your officers because we have our own and let's just consolidate some of your offices to save money because we bought you at the all time nuclear highs. Hopefully I'll still be here as long as I keep producing.

Jan 28, 2008 01:52 AM

Dan Hartman

Province Mortgage Associates - NMLS #2861 - Providence, RI

The 2 best things about this:

Brokers should regain access to some Bank of America programs, at least temporarily; and

Great hiring opportunities for all other companies as BofA and CW lay off some very talented people.

Great post!

Dan

Jan 28, 2008 02:01 AM

The World's Biggest Lender: The Universal Bank of Ameriwide

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