The sky is falling...

[YeLLowBoaT]

CNN just said Country wide may be forced in to bankruptcy. :eek:

[caroftheweek]

Todd and Dana...any inside word on this?

[soupersonic]

I heard they had many many millions in reserve. Like 168 million. Not only that i have a loan getting done thru them right now and the loan officer says they are doing extremely well . It everyone else that had loosy goosy guidelines earlier that is in trouble.

[C-2]

Hey, wait a minute, IndyMac was supposed to go down next.:mad:
Mozillo is going down, Enron style.:eek:

[Todd969]

Todd and Dana...any inside word on this?
Sounds like a nasty rumour to me. I have no further comments:)

[Big Warlock]

CNN just said Country wide may be forced in to bankruptcy. :eek:
Been in the Wall Street Journal for over a week that this might happen. You can be doing great on paper but still go bankrupt without CASH!!! But this would really, really suck for the industry!! :eek:

[Boatcop]

WSJ (http://online.wsj.com/article/SB118720713650498757.html?mod=googlenews_wsj)
Damn.
How many folks will be making their house payments to a Federal Receiver?

[MBlaster]

So...does that mean if they go belly up I don't owe an more?:idea:

[fatboy95]

Sounds like a nasty rumour to me. I have no further comments:)
They are slidingbut nothing stated about a bankruptcy.
NEW YORK (CNNMoney.com) -- Countrywide Financial shares were off lows but fell more than 8 percent Friday, a day after the nation's largest mortgage lender said disorder in credit and mortgage markets could hurt the company and its financial condition.
In a filing with the Securities and Exchange Commission, Countrywide said Thursday that "unprecedented" poor conditions in the secondary-mortgage market are causing the lender to keep a larger portion of mortgage loans than it sells and said the fallout could impact future earnings.
Shares of Countrywide (down $2.45 to $26.21, Charts, Fortune 500) slid 8.7 percent during midday trading on the New York Stock Exchange. Its shares fell as much as 14 percent to $24.71 earlier in the session

[lalhc]

It's in today's busness news:
Financial stocks were weakened by heavy selling in Countrywide Financial (CFC, news, msgs), the nation's biggest mortgage lender. The stock was down as much as 20% this afternoon after a Merrill Lynch analyst downgraded the stock from "buy" to "sell" and suggested a bankruptcy for the company was possible if liquidity problems for the company worsen.
Supermodels: 5 strategies for a sinking market
"If enough financial pressure is placed on Countrywide or if the market loses confidence in its ability to function properly, then the model can break, leading to an effective insolvency," analyst Kenneth Bruce wrote in a note to clients.
At the same time, there was heavy speculation in put options -- options to sell shares -- that further pressured the stock.
The stock recovered slightly to close at $21.29, down 13% on the day. In after-hours trading, the stock was down an additional 3.3% to $20.58.

[C-2]

What is the repayment schedule on $11.5 billion dollars anyways? :jawdrop:

[ULTRA26 # 1]

Today's news
Thursday after investors were shaken by problems at Countrywide Financial Corp. that confirmed fears of widening credit problems and after the Federal Reserve injected $17 billion of liquidity into the banking system.
http://news.yahoo.com/s/ap/20070816/ap_on_bi_st_ma_re/wall_street
Housing starts fall to 10 year low
http://news.yahoo.com/s/nm/20070816/bs_nm/usa_economy_dc

[C-2]

They got a good interest only loan. :D
Yeah, really.
So if they default on any of their new new loans to cover the loans they are making - does the company get arrested for a Ponzi or kiting scheme? lol

[Mrs. Bordsmnj]

I am not so bright when it comes to mortgage loans and stuff because our mortgage is private but why are all the loan companies going under? Because they made loans to people who are now defaulting? :confused:
I know, I sound dumb. So what. :mix: :squiggle:

[Freak]

They took your mortgage and packaged it into a Hedge fund. In this package there might be some sub primes, arms ect in with you and sold it on the market to investors around the world. - small part of the result is the arms reset and the home "owner" could not pay so they walked. Now the "investment" is junk cause it was based on the fact they the "owner" would repay. The fund is junk. No one know's if what is in it has any value.
In a nutshell A loaned 20 to B who promised to pay back 25 next tuesday B loaned 15 to C who promised to pay back 25 next tuesday C loaned 10 to D who promised to pay back 25 next tuesday D loaned 5 to E who promised to pay back 25 next tuesday . Well its next Tuesday and E told D to go suck on a rock you loan shark . So everyones paper profits just went up in smoke and they are all broke and angry.
This is causing panic selling AROUND THE WORLD.
Now cash is king....if your liquid you can buy stuff on the market cheap. All we need now is a run on the banks......:sqeyes:

[Freak]

Oh....and take a look at the following schedule of billions of dollars in ARMs that will reset per month
Jan 07
$22 bn
Feb 07
$25 bn
Mar 07
$35 bn
Apr 07
$37 bn
May 07
$36 bn
Jun 07
$42 bn
Jul 07
$43 bn
Aug 07
$52 bn
Sep 07
$58 bn
Oct 07
$55 bn
Nov 07
$52 bn
Dec 07
$58 bn
Jan 08
$80 bn
Feb 08
$88 bn
Mar 08
$110 bn
Apr 08
$92 bn
May 08
$76 bn
Jun 08
$75 bn
Jul 08
$50 bn
Aug 08
$35 bn
Sep 08
$26 bn
Oct 08
$20 bn
Nov 08
$15 bn
Dec 08
$17 bn
Taken from Ty Andros' latest TedBits: http://www.safehaven.com/article-8143.htm
If there is trouble in the financial markets now, it will sure continue during the spring of 2008!

[HocusPocus]

I am not so bright when it comes to mortgage loans and stuff because our mortgage is private but why are all the loan companies going under? Because they made loans to people who are now defaulting? :confused:
I know, I sound dumb. So what. :mix: :squiggle:
thats pretty much it, lots of folks walking away from their homes or losing them because they are unable to pay and it leaves the lender holding the bag. at first it was mainly the subprime lenders that were having the problems but american home mtg didn't deal in subprime loans and it went under. now the largest in the nation is on the brink. there is rumor that the feds may lower interest rates as soon as next month but i don't think that will help much with the way things are going.
just read this in part of an article on countrywide.
Credit rating agency Moody's Investors Service downgraded Countrywide's senior debt rating to "Baa3" from "A3," citing Countrywide's funding problems.
A ratings downgrade essentially makes it more expensive for a company to borrow money. Countrywide could be further downgraded if it continues to face liquidity problems, Moody's said in a statement.
The new rating is Moody's lowest investment-grade mark. Any downgrade would take Countrywide into "junk" status, which would keep many large institutional investors from owning its debt.
seems most banks are not ready to start selling off the homes to cheap but how much longer before they give in and start liquidating these places? then will that bring home values down even further? time will tell.

[Freak]

Now first question I have to you folks is:
You are probably aware of all the cash the fed is injecting into the market over the last few days to try and keep things a float. (and it's not working) Something like 60 billion. At what point is it considered price fixing? For anyone trying to short the market they are getting pinched by the fed.
Next one is when do you think the results will start to show. Example all the pensions that are heavily invested in the junk funds are now gone. Yes sir your pension is gone. :eek:

[C-2]

My question is they are banks, who make money by lending.
They have tightened, and will continue to tighten, the qualifying standards. At some pointy (maybe now?), most people will no longer be able to qualify for a loan, based not only on new underwriting criteria, but also LTV values since prices have dropped and equity is gone.
Which means the lenders will not be writing new loans, and thus not making any money (and let alone dealing with all the leftovers).
WTF are they going to do, and when will it get better?
What are you industry peeps being told?

[Freak]

Although he is a megalomaniac Cramer actually had a decent analysis of what Bernake and the FeD are up to:
http://www.thestreet.com/s/how-bernankes-plan-could-work-pt-1/markets/activetraderupdate/10374163.html

[Trailer Park Casanova]

They need $10 bill a month to operate according to CNBC squak box.
They drew down all their credit.
Next they will probably sell off their "Mothers diamond ring", that is, sell off the mortgages they have with customers that have premium credit and aren't upside down on their property value vs note ballance.
I still don't clearly see why they would be in any trouble.
No mention of any sub-prime loans monkey on their back.
Perhaps it's hard to draw cash from banks to, in turn, finance home loans.
I think they'll be fine with time.
This overall mess is going to last longer than people think.

[Freak]

My question is they are banks, who make money by lending.
They have tightened, and will continue to tighten, the qualifying standards. At some pointy (maybe now?), most people will no longer be able to qualify for a loan, based not only on new underwriting criteria, but also LTV values since prices have dropped and equity is gone.
Which means the lenders will not be writing new loans, and thus not making any money (and let alone dealing with all the leftovers).
WTF are they going to do, and when will it get better?
What are you industry peeps being told?
All the boutique lenders will be out of business soon....
Remember that we have been living in unusual times for a long time. Explosive growth we have seen for many years is irregular.
The rumor inside the industry this morning is that Countrywide is about to go tits up publicly.
There is no way to guess what will happen but if the fed keeps injecting money in the market hyperinflation will follow.

[C-2]

I still don't clearly see why they would be in any trouble..
They are borrowing money to cover their current bills. They are borrowing from Peter to pay Paul. Sure, it's more complicated than that, but then again, not really.

[ULTRA26 # 1]

All the boutique lenders will be out of business soon....
Remember that we have been living in unusual times for a long time. Explosive growth we have seen for many years is irregular.
The rumor inside the industry this morning is that Countrywide is about to go tits up publicly.
There is no way to guess what will happen but if the fed keeps injecting money in the market hyperinflation will follow.
No doubt about that

[Freak]

These 200 point drop days can be dealt with but if it get around 400-500 points in a day things will get out of hand.......

[Trailer Park Casanova]

They are borrowing money to cover their current bills. They are borrowing from Peter to pay Paul. Sure, it's more complicated than that, but then again, not really.
So Countrywide is servicing the money that they borrowed with borrowed money.
They have to pay back the money they borrowed to make loans that are in trouble?

[cdog]

The investors want to be compensated more to hedge the risk for non conforming loans that Fny and Gne won't buy. This is drying up the money that they can lend and causing a capital shortfall.

[OC28HEAT]

They will be owned by BofA or Chase within a week or two at $10 a share

[Trailer Park Casanova]

Although he is a megalomaniac Cramer actually had a decent analysis of what Bernake and the FeD are up to:
http://www.thestreet.com/s/how-bernankes-plan-could-work-pt-1/markets/activetraderupdate/10374163.html
Kramer guest-hosted the Imus show once and their is a really genuine decent side to the guy. Far different from the character ya seen on Mad Money.
We put a few bux aside and are investing on his advise.
Doing OK.
Kramers investment takes get much better with insider advise from people here in ***boats.
But,, back to Yellowboats Countrywide thread,,,,,

[C-2]

So Countrywide is servicing the money that they borrowed with borrowed money.
They have to pay back the money they borrowed to make loans that are in trouble?
I believe to fund the current loans since many of their guarantors/lenders, have cut-off their avaiable credit.
Somebody else came on here with a decently easy to understand explanation about trunchs and lenders having to buy back bad loans, maybe they can chime in about buy back issues.
I only follow all the industry blogs, I really don't know the mechanics behind it all, there are peeps in the industry on here....trying to find out what they're being told, or what their best guess is (and maybe it's just that at this point, all guesses since we seem to have misplaced the crystal ball).

[soupersonic]

So how does this affect someone like me who has a loan in process with them?

[Freak]

Kramer guest-hosted the Imus show once and their is a really genuine decent side to the guy. Far different from the character ya seen on Mad Money.
We put a few bux aside and are investing on his advise.
Doing OK.
Kramers investment takes get much better with insider advise from people here in ***boats.
But,, back to Yellowboats Countrywide thread,,,,,
Cramer bothers me because he gets people to buy stocks he has investments in. Basically he get's you to spend your money on what he wants to make profits on. He's using you to make the market moves he wants to see. I think in his mind that it's ok because you "can" profit also. Now that is not bad as long as you realize that and know when he is going to sell. I just can't buy into it. With that being said I’m glad your profiting.
Back on topic: I think this correction is clearly headed toward a recession perhaps worse - the evidence seems powerful. Bernake is all but salting the clouds with tall the money he is throwing out - nasty levels of inflation seem a virtual lock.

[Freak]

So how does this affect someone like me who has a loan in process with them?
No telling yet. It could go through, they could want a sh*t load more paper work from you or it could just die.

[Freak]

Anyone catch..Joe Kernen interviewed JP Morgan Chase's Cheif Economist, John Lipsky, this a.m. on CNBC. I thought it was unusual that Lipsky wasn't wearing a tie while representing his company on national TV. He was very calm, cool, and collected. -standard issue "everything is ok" appearance setup-
Kernen kept pushing Lipsky for his guess on what was going to happen. Would the market recover? Lipsky said he was an economist so only looked at facts so he doesn't know any more than anyone else. Since when?
Kernen persisted and Lipsky finally said he thought things were going to get bad - not the answer Kernen wanted.
End of interview.

[cdog]

http://www.foreclosureradar.com/press_release_070610.php
California Foreclosure Sales Reach $12 Billion
In First Half Of 2007: Up 95% From January To June
Discovery Bay, CA, July 10, 2007 - ForeclosureRadar™ today released its June 2007 California Foreclosure Report. This unique monthly report includes previously unavailable auction sales data providing a far more timely and accurate picture of California's foreclosure marketplace.
ForeclosureRadar is the first statewide foreclosure information service to track each and every foreclosure auction throughout the state on a daily basis. Other foreclosure listing services rely primarily on documents recorded at the county which delays the reporting of actual foreclosure sales trends by weeks or even months.
A total of 6,960 homes were sold at auction in June with a loan value of $2.83 Billion dollars in California. Riverside County had the highest number of foreclosure sales at 1,093 properties and $523M in loan value. Los Angeles County was second in terms of volume, but after adjusting for population, ranked 34th in the State. Yuba, Sacramento and San Joaquin Counties ranked 2nd, 3rd and 4th highest respectively with Marin County having the lowest foreclosure rate in California. Foreclosures now represent 16% of all new and resale home sales in the state.
According to ForeclosureRadar founder Sean O'Toole, "Lenders are building a significant REO inventory. Since January 1, 2007, a total of 29,696 California properties have been returned to the lender for an astonishing total loan value of $12 Billion dollars. This is unprecedented." In June alone 6,552 properties were returned to the lender for a total of $2.69 Billion dollars.
Click the link to see the numbers per county...

[EmpirE231]

http://money.cnn.com/2007/08/16/news/companies/countrywide/index.htm?postversion=2007081611

[Big Inch]

I'll try my best to answer a few of the questions posted so you have an idea of what we are seeing on the inside.
Supersonic: I would be very concerned about your loan if it is placed with Countrywide. I suppose they may still be funding some loans but even if you are a "vanilla" borrower they will not be making it easy. I have over the last week or two had every loan I placed with Countrywide come back declined for questionable reasons. They did just today borrower billions of dollars. If they plan to use this to fund more loans then you might be ok but I would recommend having your loan submitted to a different lender.
Mblaster: If they go belly up you will unfortunately still need to make your payments to someone. What generally happens is that the notes are sold at discount and you will be notified of who your new servicer would be. If this does happen make sure you continue to make your payments in order to protect your credit.
Trailer Park Casanove: Countrywide did quite a bit of subprime lending. They even had their own retail subprime company.
Oc28 heat: Don't think that these companies are above all of this. On the plus side they don't have all their marbles in one bag, as Countrywide does.
C2: I don't think we know yet what Countrywide will do with these newly acquired funds but my guess is that it will more then likely go towards keeping the doors open then to purchasing new loans. Think of it this way. If you owned a small business selling widgits and the widgit market all over was slow. If you obtained a business loan would you spend it on a larger selection of widgits? In regards to them having to buy back bad loans. This is not Countrywide's problem. They are the entity who decides not to buy the loans from these smaller lenders and leaves them stuck owing the money and forces them out of business or takes them over to mask the loss.
IMHO I think right now we just need to wait and see how all this plays out. As far as Countrywide goes the outlook looks bleak. All the talk in my office has been in regards to puts on Countrywide. Last I checked was $5 by May. Their still are companies that are lending money at good rates
and under guidelines that people can actually qualify for. What I am currently marketing is a fixed interest only loan that is stated/stated with a 700 fico and rates under 6%. They allow cash out and everything else. This company services their own loans and at this time is very stable and their business model may very well become the way of the future for lending.
OK B of A is here to take me to sushi. I'll be back later feel free to post any thoughts or questions or you can email me if you need any confidential advice.
edgar@mtgmaker.com
www.mtgmaker.com

[Mandelon]

Oh....and take a look at the following schedule of billions of dollars in ARMs that will reset per month
Jan 07
$22 bn
Feb 07
$25 bn
Mar 07
$35 bn
Apr 07
$37 bn
May 07
$36 bn
Jun 07
$42 bn
Jul 07
$43 bn
Aug 07
$52 bn
Sep 07
$58 bn
Oct 07
$55 bn
Nov 07
$52 bn
Dec 07
$58 bn
Jan 08
$80 bn
Feb 08
$88 bn
Mar 08
$110 bn
Apr 08
$92 bn
May 08
$76 bn
Jun 08
$75 bn
Jul 08
$50 bn
Aug 08
$35 bn
Sep 08
$26 bn
Oct 08
$20 bn
Nov 08
$15 bn
Dec 08
$17 bn
Taken from Ty Andros' latest TedBits: http://www.safehaven.com/article-8143.htm
If there is trouble in the financial markets now, it will sure continue during the spring of 2008!
This shows the worst is yet to come.

[C-2]

Thanks BigInch, I'm sure that helps a lot of us.
On the 700 stated/state - for self-employed - is it just that, or they asking for stated with bank statements. My friend said Home Savings (uhh, humm) is offerig a 680 fico, "full" doc which is bank statements for self-employed, 100% LTV.
Not really shopping, but crious.

[duner21]

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.

[totenhosen]

In short CW's business model is failing! They are a "wholesale lender" and hae no one to sell their loans to.

[warlock]

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...:confused:

[duner21]

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...:confused:
Well i work at Nova and i can tell you we are fine. We are closing loans as normal. Who do you work for?

[Rexone]

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:

[totenhosen]

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)

[HM]

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.

[HM]

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? :D

[centerhill condor]

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

[C-2]

-- SO --
Is it safe to say...
.
.
.
.
.
.
.
.
.
.
.
.Elvis has left the building?
.
.
.
.in memory of da King of course

[totenhosen]

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?

[HM]

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?
Reading is fundamental.

[totenhosen]

Reading is fundamental.
Yes you are wright.

[HM]

Yes you are wright.
:D
The reverse mortgage guy across the hall is very good friends with a VP at CW...who happened to visit him today and I got invited over to meet him. I got to hear a LOT of inside stuff. This guy is bailing out of CW. He was talking about the spin that CW put on their pulling from their credit lines. The execs are pretty panicked right now. If their banking division will cooperate...some in upper mgt think they can survive by basically shutting down all wholesale and correspondent channels and funding loans only thru the banking division. They have more credit lines that could be accessed thru the banking division, but they are basically saying "oh hail no!" at this point.

[Big Inch]

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?
I heard Mozilo took equity lines out on all his houses :)

[warlock]

Well i work at Nova and i can tell you we are fine. We are closing loans as normal. Who do you work for?
And even if shit did happened Id just send em somewhere else.:D

[GHT]

Just heard the Feds are injecting 16 billion to help keep money available for lending. I know it is a drop in the bucket but it may help.
Also, IF the Feds drop interest rates to help, how many people will lock their loans and really try not to lose what they have?
My bet is the Lazy suckers will Still sit on their ARMs and Still lose their house. They should have locked LONG AGO... It should have been used as a tool to excel and not just to lower a mortgage so you can buy a house or toys you couldn't afford anyway.

[totenhosen]

:D
some in upper mgt think they can survive by basically shutting down all wholesale and correspondent channels and funding loans only thru the banking division.
That is exactly what the company wide email said they were planning on doing by the end of Sept. hence my post of moving from wholesale lender to a "Bank".
Reading is fundemental. (Touche)

[HotRod82]

Yikes....the deeper you read into the markets, the uglier the picture gets. There is a lot of very nasty writing on the wall, things really could get slow for a while.

[HM]

That is exactly what the company wide email said they were planning on doing by the end of Sept. hence my post of moving from wholesale lender to a "Bank".
Reading is fundemental. (Touche)
I read that...but I read it as if you didn't know they had a "bank" already in existence because you talked about getting picked up by BofA or similar. And their lending division is both wholesale and portfolio. So, if that is what you meant...cool.

[totenhosen]

I read that...but I read it as if you didn't know they had a "bank" already in existence because you talked about getting picked up by BofA or similar. And their lending division is both wholesale and portfolio. So, if that is what you meant...cool.
No, I am aware of their multiple arms including Landsafe Title, insurance services etc. They been talking about becoming a traditional bank for a long time. BofA I believe in the past had many attempts to merge or takeover CW in the past.

[OC28HEAT]

They will be owned by BofA or Chase within a week or two at $10 a share
..

[HM]

No, I am aware of their multiple arms including Landsafe Title, insurance services etc. They been talking about becoming a traditional bank for a long time. BofA I believe in the past had many attempts to merge or takeover CW in the past.
I thought that you said that I said that you implied what I inferred. :D

[MBlaster]

Sounds like CW will have enough capital to avoid bankruptcy through 08.
Loans will be funded in house.
Things are very tight.
Applicants better be golden and have a nice down pmt or no deal.
Be ready for even higher rates.

[Big Inch]

That is exactly what the company wide email said they were planning on doing by the end of Sept. hence my post of moving from wholesale lender to a "Bank".
Reading is fundemental. (Touche)
I don't believe their new plan is to become a bank, per say. I believe their intentions are to become strictly a retail lender. They are already a retail lender and have already been cutting off or absorbing their correspondent lenders. They are essentially declining all broker submissions, at least all the ones that I have knowledge of, and not purchasing loans that were funded by their correspondent relations. Essentially crippling these companies. This is why you hear of all the lenders closing their doors over the last two weeks. Countrywide is not the only one doing this. These lenders fund these loans then are not able to sell them to the investors like Countrywide because the investors won't buy them since they have no buyers on the open market. What happens next is that the investors(countrywide and other big names) essentially give the lenders a margin call. Since they don't have the funds to repay the millions they have outstanding in funded loans they close the doors. This in turn hurts the investors(CW and others) since they are now owed boat loads of money by companies that are closed and forced into bankruptcy. Countrywide has been trying to buy up some of these companies instead of just closing them down but this is essentially just moving the losses on the books. Confused yet? :D
So anyways. I don't think Countrywide is planning on open up bank branches which is probably not what you meant but many people may have misunderstood.
Jeez I type too much;)

[totenhosen]

I don't believe their new plan is to become a bank, per say. I believe their intentions are to become strictly a retail lender. They are already a retail lender and have already been cutting off or absorbing their correspondent lenders. They are essentially declining all broker submissions, at least all the ones that I have knowledge of, and not purchasing loans that were funded by their correspondent relations. Essentially crippling these companies. This is why you hear of all the lenders closing their doors over the last two weeks. Countrywide is not the only one doing this. These lenders fund these loans then are not able to sell them to the investors like Countrywide because the investors won't buy them since they have no buyers on the open market. What happens next is that the investors(countrywide and other big names) essentially give the lenders a margin call. Since they don't have the funds to repay the millions they have outstanding in funded loans they close the doors. This in turn hurts the investors(CW and others) since they are now owed boat loads of money by companies that are closed and forced into bankruptcy. Countrywide has been trying to buy up some of these companies instead of just closing them down but this is essentially just moving the losses on the books. Confused yet? :D
So anyways. I don't think Countrywide is planning on open up bank branches which is probably not what you meant but many people may have misunderstood.
Jeez I type too much;)
No from what I've gotten from the in house company memo and moves they've made in the last few years their goal is to become more like a traditional bank. Maybe not have the brick and mortar locations of a BofA etc but than again how many banks are opening up large branch operations besides stuff in a grocery store?

[lilrick]

man...I'm lost.