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

NEW -> Contingent Buyer Assistance Program
<p>The volume on the September $15 strike price puts today was extremely heavy. </p>

<p>My puts improved today. It could be a bad investment but it is just a small slice of the investment pie. I have feeling though that there might be some sort of bad news that can make things jerk around again. We will see and I have no problem coming back to eat crow.</p>
 
<p>I dont have the guts to short this thing anymore. Its going south, no doubt. But how and when,. Who knows.If the Fed jumps in to save the market again and your short. Your screwed. I will sit and watch. As far as Wrath is concerned. I just cant understand how an insider can sell off 400 million $$$ of his stock while his company cash is used to buy the stock and inflate its value then borrow all that money weeks later. Someone needs to look at the events taking place here. I thought the SEC was awake to this type manipulation after Enron. </p>

<p> </p>
 
<p>I read much more about him after I posted that. </p>

<p>I didn't know that Mozillo has NEVER bought shares, only sold them.</p>

<p>Of course, most (all) CEO's do plenty of selling - but don't they also buy some of the time? </p>

<p>He will have hurt a lot of people, both inside and outside of the company.</p>

<p> </p>

<p> </p>
 
Yes, some CEOs do buy, even without their options. Sometimes they buy right off the regular market and it is a true sign of their befief in their company.
 
<p>Janet,</p>

<p>The prepayment penalty is 3 years. The arms reset in 2 years. So almost every ARM will result in a prepayment penatly or foreclosure. They made ton's on the prepayment penalties now it is time to lose ton's on the foreclosures.</p>

<p>Did you see how much CW made in other costs, like prepayment penalties? It was staggering.</p>

<p>CW's zealous lending helped create this mess. If they close their doors tomorrow it wouldn't break my heart.</p>

<p>Just like MCI and Enron. I really believe a class action is coming especially from people who's reserves were not counted when applying for a loan. Which from my understanding is industry norm, that paid higher rates.</p>
 
<p>trrenter,</p>

<p>I was in the mortgage business for many, many years.</p>

<p>There is no single type of loan out there - there is every conceivable combination (of terms) you can imagine.</p>

<p>I don't like blanket statements.</p>
 
<p>To clarify:</p>

<p>I am not a fan, nor defender, of Countrywide.</p>

<p>To me, they are exactly the same as every other firm making mortgages (with very, very few exceptions).</p>
 
<p>Janet,</p>

<p>I will try to not be general.</p>

<p>"But on subprime loans that imposed heavy burdens on borrowers, like high prepayment penalties that persisted for three years, Countrywide’s margins could reach 15 percent of the loan, the former employee said."</p>

<p>So country wide shoved people into the "subprime category" With ARM's so they can make 15% of the loan.</p>

<p>From my understanding "MANY" of the arms were 2/28 meaning if they customer refinanced after 2 years CW made more money.</p>

<p>Now this:</p>

<p><a href="http://www.bloomberg.com/apps/news?pid=20601087&sid=aGO3ZxLGHKck&refer=home">http://www.bloomberg.com/apps/news?pid=20601087&sid=aGO3ZxLGHKck&refer=home</a></p>

<p><em><u>Countrywide, the biggest U.S. mortgage lender, should stop paying higher commissions to brokers who steer borrowers to high-cost loans that ``are designed to fail,'' Schumer told reporters in Washington today. </u></em></p>

<p><em><u>``I am calling on Countrywide, as our nation's largest lender, to bury its bad business practices and reverse some of the damage it has already inflicted on our housing market,'' the New York Democrat said.</u></em></p>

<p>So specifically CW harmed many people with loans that were not right for them.</p>
 
I know several people very well that were originators at countrywide. One of them told me that they used to laugh about the rates they were giving people. They were giving them rates a full point above the market average, but people would take it because it was countrywide. They were also steering people into short term arms.
 
<em>"So specifically CW harmed many people with loans that were not right for them."</em>





Yes, but they were not alone. Have you seen the <a href="http://ml-implode.com/">Implode O Meter</a>?
 
<p>Yes I saw the Implode o meter on the website and out of my window.</p>

<p>The Mass exodus of a few of them I watched from my window. Quick loan most recently.</p>

<p>Easier to get a parking spot in the morning. Less smoking outside the buildings now too.</p>
 
<p>trrenter,</p>

<p>I you.</p>

<p>That's all I'm asking!</p>

<p>The story further supports my longstanding belief that going direct to <strong>anyone</strong> is worse than working with a good broker.</p>

<p>Even with using Countrywide to fund, a <strong>broker</strong> could have put something remarkable on the table.</p>

<p>I'm not in it now - so that's not cheerleading, or fishing.</p>

<p> </p>
 
<p>The problem is, brokers are unregulated. You can get a better deal but are bearing more risk by going with a broker. Brokers technically can get better rates, but that generally does not translate to a better loan for the borrower. The broker will increase the rate and make as much YSP as he/she can. Brokers generally cannot lock rates until closer to funding. This obviously differs depending on which bank lender the broker subs the loan to.</p>

<p>You should see some of the HUD 1 settlement statements that I see when borrowers fax them to be. You'd be disgusted. I actually lost a 2 million dollar loan last month to a broker. I am not making this up. I had a 6.375% 10 year IO for him wit no points. He also had his loan with us already!! His wife wouldn't shut up about going through her "friend" who was a broker.</p>

<p>Guess what, the moron broker subs the loan to wholesale at my bank! This 'friend" submits the loan as 5 year interest only at 6.75% with a 1.25% rebate to him. That's $25,000. In addition, he was charging a 2,500 origination fee. Mine was 495 bucks. Some friend, huh.</p>

<p>This is the problem with brokers, you never know if you are getting the best deal.</p>
 
<p>What do you mean unregulated?</p>

<p>Don't you think RESPA is regulation?</p>

<p>RESPA is the gold-standard in regulation.</p>
 
<p>Maestro,</p>

<p>I am so calling you out! </p>

<p>No one is more regulated than brokers - period.</p>

<p>Your bank makes YSP, they just call it something else, and do not disclose it.</p>

<p>RESPA requires ALL compensation to be laid out in the Good Faith Estimate.</p>

<p>Anyone can compare loans easily when they have one.</p>

<p>There are greedy or rogue brokers.</p>

<p>There are greedy or rogue bankers.</p>

<p>Borrowers can, and most-certainly do, shop brokers to make sure they get the best deal.</p>

<p> </p>

<p> </p>
 
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