Countrywide Financial, Bank, etc.

[DrewEckhardt 0]

Countrywide Financial is the largest mortgage lender in the country (originating 17% of loans) and the owner of Counrywide Bank which has some of the best (5.4% APR) online savings rates.

Coutnrywide has tapped out their $11.5B credit line.

Investors are backing out of the short-term commercial paper market.

One of Merill Lynch's analysts said "that a loss of access to short-term loan markets could force Countrywide into bankruptcy"

1) In theory, Countrywide Bank is a wholly owned subsidiary. In practice, what will bankruptcy or near bankruptcy mean for its account holders?

2) Where do you put your money when you no longer trust countrywide?

3) What does this mean for mortgage rates?

[Gawain 0]

Countrywide is going to be fine. The majority of their loans are not in the sub-prime market.

Check your news again. They have not tapped-out their credit line. They have tapped it. http://money.cnn.com/2007/08/16/news/companies/countrywide/

The bond market is still strong for the other mortgage markets. Sub-prime was a risk that everyone, including consumers, should have had a clue, everyone over-extended and they got snagged.

So I try and I scream and I beg and I sigh
Just to prove I'm alive, and it's alright
'Cause tonight there's a way I'll make light of my treacherous life
Make light!

[Channman 2]

> Countrywide is going to be fine. The majority of their loans are not in the sub-prime market.

Countrywide was responsible for 1 out of every 6 home loans in the United States in the 1st half of this year. Wednesday of this week the company was said to be having trouble borrowing money on a short-term basis, securities analysis discussed the possiblility of a Countrywide bankruptcy and the fact that their stock price tumbled an additional 13% bring its losses for the year to 50% as not been helpful.

Currently life is uncertain for the 61,500 employees.

[Casurf1978 0]

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Currently life is uncertain for the 61,500 employees.

Not for the CEO, he just cashed in stock for $13mil. What a job, company performs poorly and you still get millions. IMO pay for such high level execs should be performance based.

[kelpdiver 2]

profits will suck for them. But as far as their product, I don't see a long term problem. Home backed mortgages will always be a popular investment option. just not this month.

[Gawain 0]

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profits will suck for them. But as far as their product, I don't see a long term problem. Home backed mortgages will always be a popular investment option. just not this month.

That's what I've been reading more or less. There's no shortage of buyers of the bonds these banks sell, just not for the sub-prime market.

So I try and I scream and I beg and I sigh
Just to prove I'm alive, and it's alright
'Cause tonight there's a way I'll make light of my treacherous life
Make light!

[kelpdiver 2]

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profits will suck for them. But as far as their product, I don't see a long term problem. Home backed mortgages will always be a popular investment option. just not this month.

That's what I've been reading more or less. There's no shortage of buyers of the bonds these banks sell, just not for the sub-prime market.

That's not correct. There's no shortage of buyers for conforming loans, which a max amount of 417,000, generally inadequete for the Bay Area. But jumbo loans jumped nearly a full point in the last week and that means an extra $250/month in these parts, so most people are going to wait a month until normalcy is restored.

[Gawain 0]

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profits will suck for them. But as far as their product, I don't see a long term problem. Home backed mortgages will always be a popular investment option. just not this month.

That's what I've been reading more or less. There's no shortage of buyers of the bonds these banks sell, just not for the sub-prime market.

That's not correct. There's no shortage of buyers for conforming loans, which a max amount of 417,000, generally inadequete for the Bay Area. But jumbo loans jumped nearly a full point in the last week and that means an extra $250/month in these parts, so most people are going to wait a month until normalcy is restored.

Well, since the Fed just dropped .5% on the prime rate hopefully that will keep the blood flowing.

In reference to my post you responded to, it is my understanding that for the traditional, FHA, and VA mortgages that are not in the sub-prime market, are still selling rather well from the banks to the investors that buy them grouped in bonds. Countrywide certainly is not maintaining ownership of all of these loans, they're servicing them sure...

I'm not very well versed in how these are managed so if I'm talking out of my hip (on my good leg side) feel free to straighten me out.

So I try and I scream and I beg and I sigh
Just to prove I'm alive, and it's alright
'Cause tonight there's a way I'll make light of my treacherous life
Make light!

[tigra 0]

Exactly- tapped, not tapped out, and there were good reasons for it. Everyone working in the mortgage business faces uncertainty right now, but some of the changes that are coming are long overdue. For the consumers, its going to be harder to get a mortgage loan and maybe people will be forced to buy properties they can actually afford- what a concept!

[Conundrum 1]

I worked for Countrywide for 4 years.

[jpjc2000 0]

Just bought shares of Countrywide at a low, already made two bucks a share. Even if Wells Fargo takes over, it's a good buy.