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

NEW -> Contingent Buyer Assistance Program
<p>UPDATE 2-NY pension funds to lead Countrywide plaintiffs</p>

<p>http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2007-11-30T214459Z_01_N30312252_RTRIDST_0_COUNTRYWIDE-CLASSACTION-NEWYORK-UPDATE-2.XML</p>
 
<p>Bracing for a Recession</p>

<p><a href="http://www.time.com/time/printout/0,8816,1689224,00.html">http://www.time.com/time/printout/0,8816,1689224,00.html</a></p>

<p>Since the early 1980s, with the exception of that brief downturn during the recession of 1990-91, consumer spending in the U.S. has risen every quarter. Over that period, our pocketbooks have come to commandeer an ever greater portion of the economy, from 62% of gross domestic product (GDP) in 1981 to 70% now. Spending by U.S. consumers accounts for 19% of global economic activity.</p>

<p>This activity has been increasingly fueled by debt. In 1983 household debt equaled 55% of income in the U.S.; now it's above 114% (and above 136% of after-tax disposable income). The middle class--households earning roughly between $20,000 and $100,000 annually--had a debt-to-income ratio of 141% in 2004, according to New York University (NYU) economist Edward Wolff. And he figures it's even higher today. In the third quarter of 2005, the national savings rate (personal income minus spending) went negative for the first time since the Great Depression, and it has bounced back only slightly since.</p>
 
<p>Those billions that the govt has been handing to Countrywide since the credit mkts seized up . . . . Has Countrywide at least been careful to whom they have been lending now? Have they used strict underwriting standards? If they have then it is bad, but not dreadful.</p>

<p>Hey, Lending Maestro, do you know?</p>
 
<p>Here is our beloved CFC CEO modeling his newest business suit.</p>

<p> <img id="BLOGGER_PHOTO_ID_5107749418603459954" style="DISPLAY: block; MARGIN: 0px auto 10px; CURSOR: hand; TEXT-ALIGN: center" alt="" border="0" src="http://bp1.blogger.com/_wFWqWIH-WFU/RuJfCMGRNXI/AAAAAAAACHY/lMf-Fy40Hxo/s320/orangello.jpg" /></p>

<p>Stock is headed back under $ 10.00. Supposed to be another interview with the Tan Man on CNBC after the closing bell.</p>

<p> </p>

<p> </p>

<p> </p>
 
It was annoying to see the Orangzilla on CNBC. Apparently they have a team of people trying to "help" borrowers pay back their loans by freezing rates for a while so they can suck more money from the borrowers they screwed. Of course there's not much sympathy for ignorant or foolish borrowers but difficult to see big companies that do stupid things, get bailed out by the Fed, while borrowers get all their money sucked away by lenders who get bailed out. It's obvious any Fed cut will save lenders and banks (giving them huge profits on the spread between the cost of money and the interest rate they collect) but not individual borrowers. Again the rich get bailed out and the poor (not entirely blameless) just have all their money sucked out to the pockets of lenders like Countrywide under the guise of "helping them pay."
 
Don't worry, most of the poor will walk. When it comes to not paying money owed, the stupid become remarkably intelligent. There will be people who hang on to the bitter end, but they would have done than anyway because it's part of their personality, not because of the bail out. And the money will not be totally sucked away, since it will be used in lieu of rent.
 
Time to bump the CFC thread. Today CFC closed at exactly $ 10.00. I wonder if it will ever see double digits again. And the more I read and think about some type of bailout for all the toxic loans that are resetting. It just is not going to happen. No way to make it fair and peel the onion on so many different issues that relate to what was done. It was real easy when everyone was making money. But the genie is out of the bottle. Putting her back in is just impossible.
 
Time to keep the CountryWide thread alive and kicking.

Somethings up at CFC. The market opened way up this morning and CFC got to $ 12.50. Then in a few hours it got hammered to $ 10.50. Seems a bit odd ? Most of the housing stocks are moving up today ?

Some time in January they are going to report on the 4th quarter. Back in October they sure painted a rosy picture

but with all the other lenders having issues. Citi and WaMu. I am going to assume they will report more blood flow

and red numbers. I wonder how much they owe the FHLB as of today ?
 
<p> Actually, it is down on the fed relaese. Perception is the fed is throwing them a lifeline and things are much worse that we think.</p>

<p>http://biz.yahoo.com/rb/071212/usa_fed_liquidity.html?.v=5</p>
 
<p>perhaps some of the officers would be willing to take a pay cut?</p>

<p> <a href="http://finance.yahoo.com/q/pr?s=CFC">http://finance.yahoo.com/q/pr?s=CFC</a></p>

<p> </p>

<p>







><strong>KEY EXECUTIVES</strong>

























Pay

Exercised





<strong>Mr. Angelo R. Mozilo </strong>, 68


>Co-Founder, Exec. Chairman and Chief Exec. Officer

$ 23.33M

$ 72.22M





<strong>Mr. David Sambol </strong>, 47


>Pres, Chief Operating Officer

$ 6.37M

$ 14.06M





<strong>Mr. Eric P. Sieracki </strong>, 50


>Chief Financial Officer and Exec. Managing Director

$ 1.51M

$ 1.91M





<strong>Mr. Ranjit M. Kripalani </strong>, 47


>Exec. Managing Director of Capital Markets, Chief Exec. Officer of Countrywide Capital Markets Inc and Pres of Countrywide Capital Markets Inc

$ 6.01M

$ 1.15M





<strong>Mr. Carlos M. Garcia </strong>, 51


>Chief of Banking & Insurance Operations and Exec. Managing Director of Banking & Insurance

$ 3.58M

$ 9.07M















</p>
 
<a href="http://cfc.bloggingstocks.com/2007/12/12/are-mortgage-applications-really-up/">CFC - Are mortgage applications really up? - BloggingStocks</a> Yeah, the apps are up....but it's probably just the future FB's applying to 3 & 4 different lenders - hedging their bets that at least one will bite. But it sounds great right ? <em>Mortgage applications are up !</em>
 
<p>LM


Your data is for the year ending 2006. Just this year the "Tan One" exercised his options for another 130 Million. Over the past 4 years his total compensation is something like $ 384 Million. All the while selling his toxic sludge to nieve homeowners and investors. </p>

<p><img height="226" alt="Angelo Mozilo, Chairman and CEO, Countrywide Financial Corp. speaks during a panel discussion on the subprime market fallout Monday, Oct. 29, 2007, in Beverly Hills, Calif. (AP Photo/Ric Francis)" width="200" vspace="2" border="0" src="http://us.news2.yimg.com/us.yimg.com/p/fi/14/21/01.jpg" /></p>

<p> </p>
 
What are the actual BASE SALARIES for these people? I want to know why they aren't coming out and saying...."I am going to go ahead and waive my entire 2008 salary".....or....."As a result of the recent and sudden deterioration the mortgage market, I (insert CEO name here) will be reducing my annual salary from 750,000 to 150,000 effective January 1st."
 
<p>Hey, there are a few CEO's that believe in pay for performance only</p>

<p>The Elite Circle of $1 CEOs</p>

<p>http://www.equilar.com/NewsArticles/051007_businessweek.pdf</p>
 
<p>Well CFC is back to a single digit midget. Even after the fed cut and the other snake oil the fed has been feeding the markets this week.</p>

<p>Mozilo has been awfully quiet last few days. Just noticed that another state, Illinois has its attorney general investigating Countrywide. Also fundings are down 40% from last year. Ouch. </p>

<p><a href="http://www.reuters.com/article/hotStocksNews/idUSWNAS449220071213">http://www.reuters.com/article/hotStocksNews/idUSWNAS449220071213</a></p>

<p> </p>
 
<a href="http://media.corporate-ir.net/media_files/nys/cfc/13Month1207.pdf">Countryfried's numbers for November</a>:





Disclosure on footnotes (4) and (6), loans serviced include sub-serviced loans, but the delinquency numbers exclude them. So, I subtracted the sub-serviced loans from the serviced loans to get a better estimate of the real numbers.





6.52% of the unpaid principal balance of their loans serviced are delinquent, for a total of $94.3 million.





6.34% of the loans serviced are delinquent, for a total of 557,417 loans.





1.28% of the unpaid principal balance of their loans serviced are in foreclosure, for a total of $18.5 million.





0.94% of the loans serviced are in foreclosure, for a total of 82,645 loans.





<a href="http://about.countrywide.com/presentations/docs/3Q07%20PR%20FINAL.pdf">As of September</a>, they had $304.4 million in foreclosed RE.
 
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