Posted by SBC FINANCIAL SERVICES, INC. on 8/29/07 5:58am
Msg #208313
COUNTRYWIDE....INTERESTING ARTICLE
http://www.nytimes.com/2007/08/26/business/yourmoney/26country.html?pagewanted=3
| Reply by MelissaCT on 8/29/07 7:47am
Msg #208315
Interesting allegations & certainly makes sense/explains some things. Although, as a business, they are supposed to make money. It seems to be similar to grocery stores putting candy racks at the registers and convenience stores @ gas stations selling snacks/milk, etc. -- at least in theory. You put your cash cows in the public's face & more than not, they'll be sold.
The article certainly makes you think...but, if alt-A borrowers were being put into sub-prime loans through CW, many times those borrowers would shop around for the best rate/terms, so if CW's sub-prime rate/terms were better than another company's alt-A program, did the borrower suffer? Just my musings regarding this article.
| Reply by ikando on 8/29/07 9:43am
Msg #208324
I had an interesting experience this week with a Countrywide loan.
I received a call on Friday to do a closing at 8:00 p.m. on Monday. No problem. I contacted the borrower to get directions and confirm that they wanted to wait to 8:00 p.m. to close. The wife responded, "Well, I have a newborn, and if we can do it earlier..."
So I called the SS to let them know that the borrower wanted to close earlier in the day. He said he'd contact Countrywide to see if they could send docs sooner.
FYI, I work from an office, not my home. I'm sitting in my office at 5:30 on Monday waiting to see when the docs come in. At 6:30, I call the SS to see what time to expect them, and he says lender wants to back up to 9:00 p.m.
I contact the borrower, and husband says, (paraphrased) I don't know why they want to push this tonight. I didn't ask for a particular date/time. I can wait til tomorrow.
So, it appears that Countrywide was trying to push to close for end of the month funding. I told the SS and the borrower that I was not available to go out after 9:00 (especially to that part of town), so if docs not to me by 7:30, it's a no go on my part.
Needless to say, I didn't go. I haven't heard anything back. Considering contacting borrower to see what happened.
Opinions?
| Reply by Elizabeth Soliday on 8/29/07 10:03am
Msg #208332
The whole concept of them making more on subprime loans is because of the RISK it poses. Just like an insurance company, they should be saving a great portion of that money for the LIKELY scenario that people will be unable to pay because they've gotten in over their heads. Rewarding brokers for making these risky loans is just stupid! They should be rewarded for making loans to buyers who can AFFORD to pay the loan. To me, this is just like the insurance companies who refused to pay for the houses they insured that got hit by Katrina, they were too busy filling their own pockets to worry about the inevitable.
| Reply by Dlars_FL on 8/29/07 11:50am
Msg #208349
Angelo Mozilo's 2007 CFC Stock Sales
were reported by Yahoo Finance to be in the area of $210m.
http://themessthatgreenspanmade.blogspot.com/2007/08/angelo-mozilos-stock-sales.html
That's almost twice what was reported in this article for the past 12 months!
Also, Mark Gilbert's article, "Hedge-Fund Guy Atones...." is good for a chuckle.
http://tinyurl.com/2o99rf
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