T-minus ? until Countrywide goes under.. . .

NEW -> Contingent Buyer Assistance Program
<img height="643" alt="Leading the Pack, in Risk" width="745" src="http://graphics8.nytimes.com/images/2007/11/10/business/mozilo-graphic.jpg" />
 
Neg Ams are pretty risky, but you can still end up owning more than your home is worth if you have a traditional mortgage.





I'm actually really surprised that Indymac has so little in comparison to the others. They still have a lot, but it looks a bit better than I would expect.
 
<p>This article reminds me of the scene from Blazing Saddle where the black sheriff threatens to kill himself in order get away from the angry mob.</p>

<p><a href="http://www.cnbc.com/id/21717347/for/cnbc/">http://www.cnbc.com/id/21717347/for/cnbc/</a></p>

<p>"Countrywide, the largest U.S. mortgage lender, said in a U.S. regulatory filing on Friday, that if its credit rating dropped below its current lowest rating, this would "severely," limit its access to the public corporate debt market and that could have repercussions on its business."</p>

<p>The scene I am referring to starts around 2:44</p>

<p><a href="http://www.youtube.com/watch?v=gDICYjC8S28">www.youtube.com/watch</a></p>
 
Well if the ratings on CountryFried`s bonds take another hit that puts them under investment grade. Then the cash that Countrywide Bank has in its costodial accounts must be transferred to another institution. This will basically be the last pin in the Tan Man. From there his bank will be considered "Underfunded" and his whole house of cards will come to a halt. The fat lady is clearing her throat and the stage lights are coming up as the house lights dim. And as IC pointed out.

Mozillo is saying he business is going to die if the crowd moves on him anymore. I smell "End Game".
 
<p> Mozilo: Borrowers made us do it</p>

<p><a href="http://latimesblogs.latimes.com/laland/2007/11/mozilo-borrower.html">http://latimesblogs.latimes.com/laland/2007/11/mozilo-borrower.html</a></p>

<p> </p>
 
<p>Looking for the silver lining. . . </p>

<p class="textBodyBlack">"Countrywide <SCRIPT>

cnbc_quoteComponent_init_getData("CFC","WSODQ_COMPONENT_CFC_ID0ESAAC15839609","WSODQ","true");

</SCRIPT>said it funded $22 billion of home loans in October, down from $41.9 billion a year earlier, but up 4 percent from September. Adjustable-rate loan volume fell 81 percent from a year earlier to $3.1 billion, while subprime loan volume totaled just $42 million, down from $3.3 billion."</p>

<p class="textBodyBlack"> <a href="http://www.cnbc.com/id/21768521">www.cnbc.com/id/21768521</a></p>

<p class="textBodyBlack">"Production funded by Countrywide's banking unit is more than 90% of total fundings, he said. To reduce its reliance on roiled credit markets, the company is trying to originate almost all mortgages through its bank, Countrywide Bank."</p>

<p class="textBodyBlack">I wonder how long the bank division will hold up considering the rating drop that is coming?</p>

<p class="textBodyBlack"><a href="http://www.marketwatch.com/news/story/countrywides-october-mortgage-loan-fundings-fall/story.aspx?guid=%7BC9C34486-C1AA-469C-B6B9-F9456068B71A%7D">www.marketwatch.com/news/story/countrywides-october-mortgage-loan-fundings-fall/story.aspx</a></p>

<p class="textBodyBlack">More on that potential ratings drop. . .basically CFC says that a ratings drop will hurt its operations. CFC spokesperson also stated that the Sun is hot and that water is wet.</p>

<p class="textBodyBlack"><a href="http://www.philly.com/inquirer/business/20071113_Countrywide_alerts_SEC_to_risk_of_lower_debt_ratings.html">www.philly.com/inquirer/business/20071113_Countrywide_alerts_SEC_to_risk_of_lower_debt_ratings.html</a></p>
 
Hey, whatever happened to the logical idea that Warren Buffett was going to buy Countrywide, or at least some part of it? And wasn't he also going to buy Bear Stearns? Or was that Bank of America? Or are folks finally starting to believe Mr. Buffett when he says that he thinks OTC derivatives are financial weapons of mass destruction?
 
<p>Read this Barrons article of today</p>

<p><a href="http://online.barrons.com/article/SB119488478165290127.html">http://online.barrons.com/article/SB119488478165290127.html</a></p>

<p>I think the only way CountryFried is staying alive is the backdoorbailouts from the Fed. Just keep rolling this mess over and hope it goes away. That puts all this debt on the taxpayers when the machine stops churning. Politics is keeping this POS alive. We cant let America`s number one Mortgage Company die. Thats bad politics. Especially in an election period. </p>
 
I am getting that Wizard of Oz feeling about CountryFried. With Mozillo as the Wizard. "Pay no attention to the man behind that curtain" "The Great and all Mighty Oz has spoken" As "ToTo" pulls the curtain away to reveal the truth about the Wizard. Just going to take a little "dog" from here on to bring the evil wizard out in the open.
 
My mortgage is with CountryF'd.....I hope when it goes under, nothing wacky happens with the new loan servicer. How the heck would one keep on top of such a thing ? (Like, making sure where to send my next payment....that if it's late due to the changeover, it doesn't hit my credit report, etc.)
 
Don't worry Troop, B of A already has a transition team in place, just in case that happens. You won't even notice a difference, well... until you get a bill from B of A.
 
<p>I had lunch a few days ago with an old friend that is a consultant for Country Fried. Basically it seems the fix is in. There is no way under the current "political" situation that this company is going to be allowed to fail. They just have the juice in the right places. The thought of "America`s Number One Home Lender" and also the largest mortgage servicing company going down the tubes just will not occur. The Fed can just pump as much cash to Countrywide bank as it needs. When I mentioned that the Ratings on the bonds would force the CFC bank to give up its custodial assets he just smiled. So my guess is that Countrywide will survive as long as this administration does. The shareholders are bailing and rightfully so. A year from now the juice will be gone and the B of A takeover will happen. </p>

<p> </p>
 
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