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

NEW -> Contingent Buyer Assistance Program
<p>Heartwarming story? Or sign of CFC desperation?</p>

<p>Foreclosure rescue: Saving a home


How a Cleveland family got into a mortgage mess and what they did to keep their house.</p>

<p>


http://money.cnn.com/2007/11/19/real_estate/foreclosure_fix_Stutzmans/index.htm?source=yahoo_quote</p>
 
<p>Time to bump our fun CountryFried thread. I heard this little tidbit this morning on CNBC and dug around for a quote.</p>

<p><em>The Wall Street Journal</em> reported Monday that <a href="http://money.cnn.com/quote/quote.html?symb=CFC&source=story_quote_link">Countrywide Financial</a> (<a href="http://money.cnn.com/quote/chart/chart.html?symb=CFC&source=story_charts_link">Charts</a>, <a href="http://money.cnn.com/magazines/fortune/fortune500/2007/snapshots/372.html?source=story_f500_link">Fortune 500</a>), the nation's largest mortgage lender, has turned to the Federal Home Loan Bank in Atlanta as its major source of funding since mid-August. The paper reports that Countrywide's borrowings at the quasi-governmental entity stood at $51.1 billion as of Sept. 30, up 77 percent from three months earlier.</p>

<p>So as we discussed earlier in this thread. When the Tan Man goes BK. The debt that will result will all fall on us taxpayers. That 51 Billion is secured by his Mortgages he services which are 60 Billion. This is going to make Enron and the S&L problems of years back look small when it finally all ends.</p>

<p>The stock is now at $ 9.16. I wonder how the B of A Shareholders feel about giving away a Billion to the Tan Man as well ?</p>

<p> <a href="http://www.reuters.com/article/marketsNews/idUKN2632086120071126?rpc=44">http://www.reuters.com/article/marketsNews/idUKN2632086120071126?rpc=44</a></p>

<p>Looks like the Congress may gut the deal for Countrywide and Close the Fed ATM for Mozillo.</p>

<p>Markets about to close and CFC is at $ 8.79 . Thats another 8% of market cap evaporated in a day. Ouch.</p>

<p> </p>

<p> </p>

<p> </p>
 
<p><a href="http://www.cnbc.com/id/21978972">http://www.cnbc.com/id/21978972</a></p>

<p>This is like the Titanic when it started breaking apart. Some terrible noises are starting to rumble for CFC. Schumer may have just gutted any chance for the Fed to continue funding CFC. I am going to guess the next thing will be a run on its banks by depositors. This could get very ugly very fast for the rest of the financials as well. We are approching the panic phase for the housing downturn just passing through desperation. </p>

<p>Here is the response from the Tan Man to todays news. Just kidding.</p>

<p><img alt="" src="http://columbuscitizensfd.org/graphics/lamborghini1.jpg" /> </p>

<p> </p>
 
<p>Why does anyone believe anything CFC says now. . . that is probably why its statements are internally contradictory and nonsensical.</p>

<p>"LONDON (CNNMoney.com) -- Countrywide Financial, the nation's largest mortgage lender, said Tuesday that big losses at Freddie Mac are unlikely to significantly dent its business.</p>

<p><strong>Countrywide doesn't believe the loss at Freddie will have a "material impact on our ability to fund loans,"</strong> David Bigelow, managing director of investor relations, said at an investor conference in New York hosted by Friedman, Billings, Ramsey. The conference Webcast was monitored in London."</p>

<p><a href="http://money.cnn.com/2007/11/27/news/companies/countrywide/index.htm?source=yahoo_quote">money.cnn.com/2007/11/27/news/companies/countrywide/index.htm</a></p>

<p>"Speaking at an FBR Capital Markets conference, David Bigelow, a Countrywide managing director of investor relations, said issues affecting Fannie Mae and Freddie Mac will not have a "material impact on our ability to fund loans." </p>

<p>He also said "we are very familiar with FHLB collateral requirements, and we are in full compliance. ... The FHLB has some experience in risk management, and they probably have some idea what they're doing in terms of their lending activities."</p>

<p> The Calabasas, California-based company has shifted its business to emphasize smaller, safer home loans that Freddie Mac and Fannie Mae will buy. (I know that this was added by the writer of the article but still...)</p>

<p> <a href="http://biz.yahoo.com/rb/071127/countrywide_outlook.html?.v=1">biz.yahoo.com/rb/071127/countrywide_outlook.html</a></p>

<p> </p>
 
<p>The Stealth Public Bailout of Reckless “Countrywide”: Privatizing Profits and Socializing Losses</p>

<p><a href="http://www.rgemonitor.com/blog/roubini/228924">http://www.rgemonitor.com/blog/roubini/228924</a></p>

<p>The letter by Senator Schumer questioning the $51.1 billion that Countrywide borrowed from the Federal Home Loan Bank system (specifically the Federal Home Loan Bank of Atlanta) has finally revealed the little dirty secret - that was known only to a few insiders and was noticed on this blog a month ago – that Countrywide, the largest US mortgage lender, has received a massive stealth public bailout that has put at severe risk taxpayers’ money. Here is Countrywide - the premier poster child financial institution of the reckless and predatory lending practices of the last few years – getting in severe financial trouble because of its rotten lending practice in subprime, near-prime and prime mortgages – and whose CEO Mozilo is under SEC investigation for potentially illegal activities – now receiving a massive $51.1 billion of public bailout money with little official supervision of such lending. Mozilo is under investigation for his accelerated sales of Countrywide stock under a 10b5-1 plan. Mozilo has made more than $100 million on stock sales this year, while Countrywide shares collapsed more than 50%.</p>

<p>


As the Schumer letter correctly points out the collateral against this $51 billion loan is mostly toxic waste subprime garbage whose market value is now much lower than the face value of such mortgages; so $51 billion dollar of taxpayers’ money has been put at risk with garbage as collateral for it. </p>

<p> </p>
 
<p>The daily trauma of CFC continues today. The market is going to close up HUGE. Up like 360 points as I type this post.


But CFC is down for the day 1.5% @ $ 8.84. Looks like nothing can save this company. Not even one of the best trading days in 4 years. As more institutions and pension funds get out of this equity we can expect it to get to $ 5.00 before the end of the year. At some point when it gets down to a couple bucks. B of A or someone will step in and buy it cheap. The franchise is still worth something along with the servicing of performing mortgages. But the amount of bad debt and true liability to the FHLB is the unknown. </p>

<p><a onclick="window.open(this.href, '_blank', 'width=184,height=253,scrollbars=no,resizable=no,toolbar=no,directories=no,location=no,menubar=no,status=no,left=0,top=0'); return false" href="http://blog.inman.com/.shared/image.html?/photos/uncategorized/2007/10/29/mozilomug_2.jpg"><img title="Mozilomug_2" style="FLOAT: left; MARGIN: 0px 5px 5px 0px" height="206" alt="Mozilomug_2" width="150" border="0" src="http://blog.inman.com/inmanblog/images/2007/10/29/mozilomug_2.jpg" /></a> "Pardon me I am late for my tanning appointment" </p>

<p></p>

<p>


</p>
 
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<p>Yeah, but servicing may be about to get much more expensive. See calculated Risk.</p>

<p>Apparently bkruptcy trustees want real documentation and bills in order to authorized payment of same.</p>

<p>And we lawyers will try our best to make sure the note endorsements and all are done correctly, so the foreclosures are done properly.</p>

<p>If they actually have to keep track of thngs and know what they are doing, then servicing will cost what it ought to have cost all along and B of A will discover it has bought a pig in a poke.</p>
 
Like I posted before. As long as the current administration is in bed with the Mortgage Lobby. This pig will fly. Somehow CountryWide is to be rewarded for all the teaser loans and the slime they sold for the last couple years. If I was short I would be screaming foul. It just does not seem fair to all the people paying a 30 year fixed to bail out the crowd that could not afford a home without loans that should have never existed. Such as anything Neg-Am. This stinks to high heaven. Time will tell if the band-aid beng applied can stop the arterial bleeding. I think not in the long term perspective. Rewarding the local family of 4 who bought a $ 500,000 house on $ 50K a year in income is just is not going to get fixed. Especially now that that house is worth $ 400,000.00 and will sit for 6 months before it sells. It all about politics right now.
 
U.S. investigates Countrywide fees





The mortgage lender is subpoenaed over charges to homeowners in bankruptcy





<p>http://www.latimes.com/business/la-fi-countrywide29nov29,1,4192234.story?coll=la-headlines-business</p>
 
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