In short CW's business model is failing! They are a "wholesale lender" and hae no one to sell their loans to.
A very sad sad day here in Tucson. First Magnus Financial a nation wide lender just filed bk. Closed their doors and they are not taking any new loans or funding loans.
Saw that...I hear that Nova is next since they are brokers but no one is buying their paper....Hope Countrywide is alright since they are my preferred lender...
Saw that...I hear that Nova is next since they are brokers but no one is buying their paper....Hope Countrywide is alright since they are my preferred lender...
Well i work at Nova and i can tell you we are fine. We are closing loans as normal. Who do you work for?
As I remember it wasn't all that long ago there were about a dozen threads like this indicating if there was a correction at all it would be a small one. They were primarily propelled along by those in the RE and mortgage and related industries basically implying history wouldn't repeat and the bull housing market would just self propel itself into the sunset regardless of overvaluization and sketchy loans. (http://www.***boat.com/forums/showthread.php?t=101288)
Hmmmm :idea:
Insider email I received indicates that by Sept Countrywide will no longer accept broker loan submissions. All loans will be originated from within Countrywide.
They are effectively going to change the business model from a wholesale lender and to a "BANK". Expect a possible consolidation of CW with another company (perhaps BofA)
Insider email I received indicates that by Sept Countrywide will no longer accept broker loan submissions. All loans will be originated from within Countrywide.
They are effectively going to change the business model from a wholesale lender and to a "BANK". Expect a possible consolidation of CW with another company (perhaps BofA)
Countrywide already has a Banking Division. They are both a wholesaler and a portfolio lender, but they did their fair share of wholesaling/secondary market selling as well. They are very adept at servicing loans - mostly A paper/Alt A type loan. They have(had) one of the largest corespondent channels in the industry.
The truth about the 40 Banks lending CW money is not accurate.....CW pulled that money from existing credit lines.
As I remember it wasn't all that long ago there were about a dozen threads like this indicating if there was a correction at all it would be a small one. They were primarily propelled along by those in the RE and mortgage and related industries basically implying history wouldn't repeat and the bull housing market would just self propel itself into the sunset regardless of overvaluization and sketchy loans. (http://www.***boat.com/forums/showthread.php?t=101288)
Hmmmm :idea:
Large or small, it will recover. But I agree...the people who were claiming it would be small had an Enron type of thinking....meaning, if nobody panicks...the house of cards won't come down. I had always felt it would be huge because of all the fraud in this industry. I had people calling me a goody two shoes and was told "everyone does it." Maybe I should go BK now because everyone is doing it?
There is no way to guess what will happen but if the fed keeps injecting money in the market hyperinflation will follow.
there's alot of pressure for the fed and other central banks to put in more money faster. The logic is that in '29 the banks came in too late to save the market.
they call it, nuking the credit markets to save them!
What a load of crap. Let these investors who shopped long and hard for these high returns take the downside. I don't get it why bail out investors. a market without risk is like a church without sin!
Andrew Jackson, while in office, said these bankers will ruin the country if we let them. He was against a central bank, fed, etc....way back in the early 1800s.
CC
-- SO --
Is it safe to say...
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.Elvis has left the building?
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.in memory of da King of course
The truth about the 40 Banks lending CW money is not accurate.....CW pulled that money from existing credit lines.
Wrong! What do you think those existing credit lines where from? They are part of a syndication line/loan comprised of numerous banks. Do you think one bank out there wants to have an exposure that large?
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