Leading Home Mortgage Loan Company On The Verge Of Bankruptcy Still Running Ads
Leading Home Mortgage Loan Company On The Verge Of Bankruptcy Still Running Ads
Countrywide Financial, the nation’s leading mortgage lender, is suffering a liquidity crunch as a result of doling out risky subprime loans in the past few years. The company announced today that it will borrow $11.5 billion in order to keep making home loans. “The announcement sent its stock tumbling about 11 percent and prompted one credit rating agency to downgrade its rating to near-junk bond status.”
A Countrywide spokesman said, “Management is completely focused on running the business in a changing environment.” Unfortunately, Countrywide isn’t taking the necessary steps to prioritize its spending and maintain its solvency.
This afternoon, CNBC ran a report on Countrywide which stated the company was “suffering a perfect storm of bad news.” Moments after that piece aired, a Countrywide commercial appeared on the CNBC network. “Homeowners, wanna refinance and get cash? Countrywide has a great reason to do it now,” the ad blared. Watch it:
Countrywide made one out of every six home loans in the U.S. in the first half of this year. If the company were to declare bankruptcy, “it would be a huge shock to the U.S. housing system and the mortgage system as perceived around the world.” If Countrywide is serious about surviving the market downturn and ensuring the stability of its loans, it should stop wasting much-needed funds on TV ads.
UPDATE: Media Biz notes that Countrywide is also going on an internet ad spending spree.
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That’s a dumb thing to say. Countrywide still needs to make money. The timing of the ad might be ironic, but why would the company stop marketing itself?
August 16th, 2007 at 9:47 pmThe money CountryWide spends on advertising is BRIBE MONEY to KEEP THIER STORY HUSH-HUSH IN THE MSM!!!
August 16th, 2007 at 9:48 pmWell they want to screw over a few more people before going belly up.
August 16th, 2007 at 9:49 pmNationwide is on the slide…….
-GSD
August 16th, 2007 at 9:50 pmbut why would the company stop marketing itself?
Comment by David — August 16, 2007 @ 9:47 pm
All matters how close they are to insolvency.
August 16th, 2007 at 9:54 pmI don’t think you understand business. Faiz, are you paid by the post? It seems like you’re looking for something to complain about.
August 16th, 2007 at 10:00 pm#1, that’s a faulty analysis. This company can afford to stop marketing itself — it’s the market leader. Moreover, running ads are expensive — and to keep running them isn’t a good financial message to send.
Put in a political context, would a failing presidential candidate keep running ads at this stage? No, they pull their ads to save money in the hope that it will extend the campaign.
August 16th, 2007 at 10:01 pm“Well they want to screw over a few more people before going belly up.
Comment by Jay Randal — August 16, 2007 ”
Who have they screwed over?
August 16th, 2007 at 10:01 pmClearly ThinkProgress has no concept of business because Countrywide still needs cashflow to stay in business and advertizing increases cash flow. This website becomes more absurd every day (selected news stories, leftwing propaganda, ignoring major news stories for more convenient political ones…etc). Just because GM and Ford are hurting doens’t mean they’re going to stop advertizing. In fact, a sure way to go belly up is for a company like Countrywide to stop advertizing.
August 16th, 2007 at 10:01 pmbut why would the company stop marketing itself?
Comment by David
Isn’t Country Wide one of the bigger Co making the sub prime loans – the sub prime loans creating this mess?
August 16th, 2007 at 10:02 pm“I don’t think you understand business. Faiz, are you paid by the post? It seems like you’re looking for something to complain about.”
No, if they are that close to bankrupcy no amount of advertisement is going to pull them out.
August 16th, 2007 at 10:03 pmMikey, have you stopped masturbating to the Osmonds yet?
August 16th, 2007 at 10:04 pmCountrywide is not on the verge of bankrupcy. It’s an irresponsible headline. Countrywide is not one of those sub-prime, fly-by-night lenders. It’s a solid company with a good track record of providing good products to consumers.
August 16th, 2007 at 10:04 pmAndrew, you need cashflow to advertise!!! Who is clueless about business?
August 16th, 2007 at 10:04 pm“Just because GM and Ford are hurting doens’t mean they’re going to stop advertizing. In fact, a sure way to go belly up is for a company like Countrywide to stop advertizing.
Comment by Andrew — August 16, 2007″
It’s called Capitalism Andrew and these lefties here don’t understand that term and hate it!
August 16th, 2007 at 10:05 pmYou trolls are silly > who the hell defends a shady mortgage company? Have you no shame? Your defense of Exxon’s fat slob Raymond was over the top.
August 16th, 2007 at 10:05 pmAndrew
It is the type of loan they are known to deal out – sub prime…. creating this big black hole.
August 16th, 2007 at 10:06 pmCountrywide is a predatory lender with no actual positive value to the economy. They hurt America. Why do you righties love them so much?
August 16th, 2007 at 10:06 pm“No, if they are that close to bankrupcy no amount of advertisement is going to pull them out.
Comment by JPark — August 16, 2007″
Really? You a business major? Didn’t think they taught those courses until you get to college.
August 16th, 2007 at 10:07 pm“It’s called Capitalism Andrew and these lefties here don’t understand that term and hate it!”
I, in my profession, would not have the job I do without capitalism (or a variation of). I am just not a moron, like you.
August 16th, 2007 at 10:07 pmAndrew —
Countrywide isn’t suffering from a problem of not getting new loan applications. Rather, the company is having problems in financially-ensuring the loans that they are giving out.
People are going to go to Countrywide for loans, regardless of whether they advertise or not. The money should be used to secure those loans.
August 16th, 2007 at 10:07 pm“Countrywide is a predatory lender with no actual positive value to the economy. They hurt America.
Comment by JPark — August 16, 2007″
You can explain that?
August 16th, 2007 at 10:09 pmLOL, no, I am not a Business Major. I WAS an Accounting major. Until I graduated. And I thought Adam Smith was cool, until I read what he wrote.
August 16th, 2007 at 10:09 pmI love CREW. Even if it took 3 years for the government to finally slap some Obama smearers on the wrist, it never would have happened without CREW. Fortunately Obama can fend for himself and crushed in that election despite all the Republican dirty tricks. Don’t count Obama out of this. He is formidable and good.
http://www.citizensforethics.org/node/29934
August 16th, 2007 at 10:09 pmDennisJ
Show me a link… I heard differently.. Country Wide has provided sub prime loans.
August 16th, 2007 at 10:10 pmAnd through out the year I did receive a ton of junk from them offering sub prime.
” I thought Adam Smith was cool, until I read what he wrote.
Comment by JPark — August 16, 2007″
What did he write?
August 16th, 2007 at 10:10 pm‘“Countrywide is a predatory lender with no actual positive value to the economy. They hurt America.
Comment by JPark — August 16, 2007″
You can explain that?’
Jeez, Mikey, read something. Better yet, go to the hood and count the “pay day” loan vendors.
August 16th, 2007 at 10:11 pm… it should stop wasting much-needed funds on TV ads.
i think the same thing whenever i see the pharma TV ads…
THAT type of advertising needs to stop.
August 16th, 2007 at 10:12 pm.
“Don’t count Obama out of this. He is formidable and good.
Comment by jd — August 16, 2007″
Why? What has he accomplished? Specifics?
August 16th, 2007 at 10:12 pmDidn’t think they taught those courses until you get to college.
Comment by michael — August 16, 2007 @ 10:07 pm
From the way you phrase this, we must come to the conclusion that you’ve never been there (college), or you’d know, wouldn’t you?
August 16th, 2007 at 10:12 pm†I thought Adam Smith was cool, until I read what he wrote.
Comment by JPark — August 16, 2007″
What did he write?”
He wrote a lot of crap. His most famous (and damaging) was Wealth of Nations. Unfortunately he was a clueless dolt who’s philosophy was followed up until the Great Depression. Now you losers(ever since Reagan) want to resurrect his decayed corpse.
August 16th, 2007 at 10:13 pmWho have they screwed over?
Comment by michael
who have you debated?
August 16th, 2007 at 10:13 pmBetter yet, go to the hood and count the “pay day†loan vendors.
Comment by JPark — August 16, 2007 @ 10:11 pm
Or the ones that cluster around Army bases.
August 16th, 2007 at 10:13 pmWhat I heard was only that 2% of those people with SUBPRIME loans have defaulted, not exactly a huge number. Also any lender who would give 500k to someone making 40k a yr knew that this was a bad loan
August 16th, 2007 at 10:14 pm“Jeez, Mikey, read something.
Comment by JPark — August 16, 2007″
No! I want to see how smart or dumb you are. Explain it if you can? If not, then we know you aren’t too smart.
August 16th, 2007 at 10:14 pmIf it’s near the point where a liquidation of its assets would be the only possible solution, through a Chapter 7 bankruptcy, then spending money on advertisements is a big waste.
But if it merely could benefit from a restructuring and reorganization in a Chapter 11 bankruptcy, then I don’t see what harm running a few ads would do and a bankruptcy judge would probably authorize them to continue running ads as part of their reorganization plan.
By the way, I hate those ads because they run so often, but that’s irrelevant.
August 16th, 2007 at 10:14 pm‘Don’t count Obama out of this. He is formidable and good.
Comment by jd — August 16, 2007″
Why? What has he accomplished? Specifics?’
I am no fan of Obama but why is he not formidable and good? Specifics?
August 16th, 2007 at 10:14 pm“He wrote a lot of crap.
Comment by JPark — August 16, 2007″
Give us an example?
August 16th, 2007 at 10:15 pmMichael, we are wasting our time, liberal loonies will never understand capitalism. Every corporation is evil in their minds, Countrywide included. Ironic, because Countrywide probably wouldnt be experiencing record defaults if they werent coerced into underwriting loands to the type of people that vote Democrat to begin with. You know, the ones that want government handouts, the ones that if they don’t qualify for a loan scream racisim and unfair lending practices.
August 16th, 2007 at 10:16 pmDidn’t think they taught those courses until you get to college.
Comment by michael
I did not think that they taught certain courses until one went to college, although the internet today certainly has such courses avaliable.
August 16th, 2007 at 10:16 pmwho? what? where? when? why?????
LOOK IT UP YOURSELF, you dumb boob!
the INTERNETS… the GOOGLE…
TRY IT! …f’n idjit…
August 16th, 2007 at 10:16 pm…
“Or the ones that cluster around Army bases”
Hey!! They are just supporting the troops…with 65% interest!!!!
August 16th, 2007 at 10:16 pm“I am no fan of Obama but why is he not formidable and good? Specifics?
Comment by JPark — August 16, 2007″
Every time I ask one of you lefties who talk big about the muslim I ask them to explain to us his accomplishments. Guess what? I never get any answers. BTW, same with Hillary!
August 16th, 2007 at 10:18 pmMikey, I am not going to get into the specifics of the “Invisible Hand” with a dolt. Just look at Republican economic philosophy. It has never worked.
August 16th, 2007 at 10:18 pmMikey, I don’t like either of them. By the way. Who do YOU like?
August 16th, 2007 at 10:18 pmMichael, we are wasting our time, liberal loonies will never understand capitalism
I understand capitalism. But since you are a conservative you should understand usury.
And as a conservative you should understand why Jesus turned the tables of the money changers. USURY.
USURY is why the stock market is a bubble!
August 16th, 2007 at 10:18 pm“Mikey, I am not going to get into the specifics of the “Invisible Hand†with a dolt. Just look at Republican economic philosophy. It has never worked.
Comment by JPark — August 16, 2007″
I have Wealth of Nations in my home library. Just refer me to the appropriate page?
August 16th, 2007 at 10:19 pmAs a home owner, I received sub prime junk mail on a daily basis – country Wide was in there too. I never got sucked into this but saw this coming… anyway, for the most part maybe it would be a good thing if the housing market came down. There is no way my kids or your kids will be able to afford a home the way the market is now.
August 16th, 2007 at 10:19 pmMichael,
We don’t have to worry Dems never win Presidential elections. They have only had one twice-elected president since FDR and they’ve only won 3 elections since 1968! If they nominate Hillary or Hussein Obama, they won’t win. They’re morons, they always nominate people that aren’t electable and I’d be hard-pressed to find anyone more unelectable than the two aforementioned candidates.
August 16th, 2007 at 10:19 pmEvery time I ask one of you lefties who talk big about the muslim
Why in the hades would I talk Muslim when I am not one?
August 16th, 2007 at 10:19 pm“Michael, we are wasting our time, liberal loonies will never understand capitalism”
Idiot.
August 16th, 2007 at 10:19 pm“I have Wealth of Nations in my home library. Just refer me to the appropriate page?”
The question mark was not needed. It wasn’t a question. I know English is not your first language, but jeez. Ok, every page. Now I refer you to a history book. Black Tuesday.
August 16th, 2007 at 10:21 pmI’d be hard-pressed to find anyone more unelectable than the two aforementioned candidates.
Comment by GOP Watchdog — August 16, 2007 @ 10:19 pm
Jeb Bush? Dick Cheney?
August 16th, 2007 at 10:22 pmThink Progress should stick to covering politics or is it trying to make political hay?
August 16th, 2007 at 10:22 pm“Mikey, I don’t like either of them. By the way. Who do YOU like?
Comment by JPark — August 16, 2007″
You still haven’t answered my question, you never do! Who do I like? At this point in time I will go with whoever is the most likely to beat the liberals. Today it looks like Rudy, tomorrow it could be Fred. It’s too early.
August 16th, 2007 at 10:22 pm“We don’t have to worry Dems never win Presidential elections. They have only had one twice-elected president since FDR and they’ve only won 3 elections since 1968! If they nominate Hillary or Hussein Obama, they won’t win. They’re morons, they always nominate people that aren’t electable and I’d be hard-pressed to find anyone more unelectable than the two aforementioned candidates. ”
Maybe you are right. There aren’t many more unelectable than Hillary…except McCain, Romney, Giulliani, et al.
August 16th, 2007 at 10:22 pmI have Wealth of Nations in my home library. Just refer me to the appropriate page?
Comment by michael — August 16, 2007 @ 10:19 pm
Huh? They have a coloring book version out?
August 16th, 2007 at 10:23 pm“Think Progress should stick to covering politics or is it trying to make political hay?”
What does that mean?
August 16th, 2007 at 10:24 pmWhere are the time stamps on the comments for this page?
August 16th, 2007 at 10:24 pmNo, Mikey, you answer MY question. Who do you like?
August 16th, 2007 at 10:24 pmGOP Watchdog
August 16th, 2007 at 10:24 pmAs a matter of fact, we won the last two presidential elections. The problem is the Dems do not have the balls to steal it back.
“Where are the time stamps on the comments for this page?”
Well, they would be just to the right of the @
August 16th, 2007 at 10:25 pmthere is two ways to look at the housing market. would you rather have a $1000 house payment on a 100k loan, or $1000 adjustable payment on a 500k loan. I will take the 100 k loan because i can pay that off in 3 yrs and never be a slave to a bank again. This adjustment is just weeding out the lenders who were giving 500k loans to people making 40k a yr.
August 16th, 2007 at 10:28 pmHere’s a tip to one of the BEST financial blogs
http://calculatedrisk.blogspot.com/
August 16th, 2007 at 10:30 pmThe real problem is that the “capitalists” aren’t buying these shaky loans, which are bundled with others and sold to investors. This downgrading of Countrywide’s credit rating will make these loans even less attractive to investors. They can spend all the money on advertising they’d like, it still won’t make these loans more attractive to prospective investors.
August 16th, 2007 at 10:30 pmI got one of those phone solicitations from Country Wide about a year or so back. The spieler waxed enthustiic about how my mortgage payment could be reduced if I transfered my mortgage. When I said I had no mortgage, he did not miss a heartbeat – offered up a reverse mortgage.
August 16th, 2007 at 10:30 pmHad enough,
Won the last two elections huh? Read the Constitution, the popular vote doesn’t matter (in reference to 2000) and as far as all of America is concerned (with the exception of the looniest of the looney liberals) the 2004 election was easily won by George W. Bush and Dick Cheney. Sorry, you guys were stupid enough to nominate John Kerry and you lost. Just like you guys will be dumb enough to nominate either Hillary (who everyone hates) or Barry Hussein, a muslim with no legitimate political experience…good luck with that. Remember, Democrats know nothing about winning the presidency.
August 16th, 2007 at 10:31 pmThere is two ways to look at the housing market? You expect us to believe you make enough money to take a 100,000 dollar loan with that grammar? Guffaw.
August 16th, 2007 at 10:31 pmEasily won by Bushie and his cohort? What? You are a Limbaugh fan, right?
August 16th, 2007 at 10:32 pmI guess “lost another loan to Ditech” takes on a whole new meaning!
August 16th, 2007 at 10:40 pmGOP Watchdog
Such old old crap…
2000 The SC selected Bush. When all the votes in Fl were counted Gore actually won.
2004
August 16th, 2007 at 10:43 pmwe did win OH and FL, you know it…
If the dollar tanks, we will have inflation — but the Fed knows it can deal with inflation. Solving inflation is simple: you just raise rates until it breaks. Paul Volcker demonstrated that.
What the Fed fears is not inflation, but deflation. They have no weapon to deal with deflation — and deflation is what lurks under the bed whenever you’re talking about vast amounts of debt gone bad.
Remember, the great Japanese bubble was not just in stocks — it was in real estate, too, and more than anything it was in debt. In 1999 we had a bubble in stocks, but not the other two. NOW we have the other two.
Believe me, Bernanke has studied the Japanese bubble and knows it cold. He cannot allow even a whiff of deflation — because deflation would be death for a nation as massively indebted as the US.
Who created this mess ?
The George ‘The Decider’ Bush admin. who really only represents the upper 2% of America with the rest of his supporters primarily being dumbasses, ignorant, or wacko right wing Christian fascists who carry their water.
August 16th, 2007 at 10:45 pmJeebus, it’s the michael thread.
What page number JPark!? Good god…..
August 16th, 2007 at 10:47 pmWaltTheMan
August 16th, 2007 at 10:47 pmI got so many calls from those predators I canceled my land line phone. Now a few have found my cell #.
Huh?
There are complexities in every family in America,” Giuliani said calmly and quietly. “The best thing I can say is kind of, ‘Leave my family alone, just like I’ll leave your family alone.’”>
http://abcnews.go.com/Politics/wireStory?id=3487614
Is this the standard the right-wingers applied to Bill and Hillary’s relationship. I don’t think so. The funny thing about the Fox-Republican officials and politicians (fops) is that they are so serious about their double standard. As if they really believe it! They are hypocrites. Hypocrites. Hypocrites. And no amount of denial will change it. They need to get up off their high horse and out of Washington. Or we will escort them.
I will take a politician who gets a BJ on the side any day over this incompetent bunch of crooked, hypocritical, cheating, disloyal fops.
August 16th, 2007 at 10:49 pm….offered up a reverse mortgage.
Comment by WaltTheMan — August 16, 2007 @ 10:30 pm
Oh lordy, what a scam.
August 16th, 2007 at 10:50 pmZooey, my only comment to Mikey from now on (and I hope everybodies) will be “Who will you vote for?” No matter what he says I have a ton of questions.
August 16th, 2007 at 10:51 pmjd, I am kind of doubting Gestapo Giulliani’s sincerity on that one.
August 16th, 2007 at 10:51 pmkm4
deflation? depression?
August 16th, 2007 at 10:53 pmwhat is the difference?
Zooey, my only comment to Mikey from now on (and I hope everybodies) will be “Who will you vote for?†No matter what he says I have a ton of questions.
Comment by JPark — August 16, 2007 @ 10:51 pm
Heh. Make sure you use lots of question marks. :D
August 16th, 2007 at 10:53 pmdeflation? depression?
what is the difference?
There is no difference – it’s just semantics !
August 16th, 2007 at 10:56 pmOK, someone else using my name on this thread.
August 16th, 2007 at 11:01 pmall previous wayne posts are not mine.
There is no difference – it’s just semantics !
Comment by km4
That is what I was afraid of….Something is coming down the pipe and it isn’t good.
August 16th, 2007 at 11:02 pmThat’s a dumb thing to say. Countrywide still needs to make money. The timing of the ad might be ironic, but why would the company stop marketing itself?
Comment by David — August 16, 2007 @ 9:47 pm
The reason they shouldn’t advertise is because they have no money to lend, therefore they don’t need any new customers. They need to collect on the loans they have.
:|
You really need this explained?
August 16th, 2007 at 11:04 pmMy buddy works for First Magnus the 5th largest privately held bank in the country…they shut down today. Here is the kicker. They shut down because the bank that they sell most of their loans to is Countrywide and Countrywide is no longer buying loans. Let me say it a different way. The countries largest purchaser of home loans is no longer purchasing them. Countrywide is a goner…
August 16th, 2007 at 11:07 pm“deflation? depression?
what is the difference?”
Actually inflation and depression are often paired. Inflation and deflation are what we have to pay for goods (driven by supply and demand). Depression and…whatever it is that is opposite are more tied with what wages are worth (ignored for the last 7 years).
August 16th, 2007 at 11:10 pmMaybe this is a question of when its time to give up. Is it time for Countrywide to give up yet?
August 16th, 2007 at 11:11 pm“Heh. Make sure you use lots of question marks. :D”
Oh, Zoo, I hope you know by know I will be as snarky and insulting as possible by now!!!
August 16th, 2007 at 11:12 pmWayne, I know, the lower case wayne is a dumbass, you aren’t.
August 16th, 2007 at 11:12 pmNow, stagflation is a truly Republican phenomena.
August 16th, 2007 at 11:13 pmOh, Zoo, I hope you know by know I will be as snarky and insulting as possible by now!!!
Comment by JPark — August 16, 2007 @ 11:12 pm
I would be disappointed if you did anything less. :-D
August 16th, 2007 at 11:13 pm“I would be disappointed if you did anything less. :-D”
I will do my best (I would be bowing if there was a good online way to do that.)
August 16th, 2007 at 11:14 pmOK, someone else using my name on this thread.
all previous wayne posts are not mine.
Comment by Wayne — August 16, 2007 @ 11:01 pm
Naturally. :)
Hey Wayne,
I haven’t checked all the threads from today, has the Dog been around? Heh.
August 16th, 2007 at 11:14 pmWhat did he write?
Comment by michael — August 16, 2007 @ 10:10 pm
read it yourself, you stupid lazy shit.
August 16th, 2007 at 11:24 pmCountrywide is my mortgage company–always treated me well.
But let me tell you a story which might tell you something about the market.
I wanted to do a re-finance–too much high-interest debt. After all the junk mail about refinancing, spam email, telemarketer’s calls, I figure I’d check it out.
Well, they told me sadly, I didn’t qualify. (same old reason–I’m self employed.)
So I went to a mortgage broker. No problem! self-employed? faugh! Good credit rating attractive set of bank statements–it was a snap!
A couple of weeks after I signed the papers, I got a letter from my new mortgage company.
They had sold my mortgage–to Countrywide.
So the company that refused to make the loan bought the loan.
Tells you all you need to know about the mess the business is in.
August 16th, 2007 at 11:26 pmHey Faiz,
I picked up on the same thing on my blog, and thought it was rather unfortunate. But I do believe Countrywide will continue to originate and fund loans.
There is no reason for the company to completely halt operations. That wouldn’t make sense in the long run. Countrywide will probably reduce their advertising spend to a degree, but not entirely.
They need cash, and if they originate government-backed loans, they will make money. What they will do is tailor loans to their investors liking.
I don’t believe they will go bankrupt either, so look for them to continue to advertise and originate loans.
August 16th, 2007 at 11:29 pmColin, companies go out of business because of bad business decisions and financial companies are more susceptible because of changing economic realities. I am betting a lot of lenders are screwed in the next 6 months and Countrywide will be no different.
August 16th, 2007 at 11:36 pmjust because the company is now choosing to use advertising dollars to help cuts its losses, and make some immediate gains, via “free” re-fi, does not necessarily mean that the company is making an unethical decision.
i’d like to know where TP is going with this one…..
August 16th, 2007 at 11:39 pmdarla, are you kidding? They are paying advertising dollars when they KNOW they are going under instead of paying their employees their last check. Great.
August 16th, 2007 at 11:46 pmi’d like to know where TP is going with this one…..
Comment by darla
Where does debt leave the hungry?
August 17th, 2007 at 12:01 amFor the last time, Countrywide is not going under. Anyone that just read the news about Countrywide this week and decided that they were an expert on the situation should study up a bit.
How many people know the difference between a wholesale lender and retail bank?
And how they each make money?
Before you read Marketwatch and deem yourself an expert, take the time to research the situation.
http://www.thetruthaboutmortgage.com/countrywide-news-dissected/
August 17th, 2007 at 12:28 amJPark, Countrywide is a lot different than many lenders. If you actually look at who has gone out of business, it’s been the subprime lenders, as well as wholesale lenders. Countrywide is not a wholesale lender.
Countrywide, Indymac, Wells Fargo, Chase, B of A and many others are retail banks as well, and can service loans. That means they don’t need to sell them on the secondary market. Honestly, has anyone here actually researched the situation.
Or are you just saying Countrywide does mortgage so they’re finished?
August 17th, 2007 at 12:30 amColin, do you work for them?
August 17th, 2007 at 12:37 amColin, businesses are going to be going out of business left and right. It is only a matter of time. The right wing voodoo economics has NEVER worked (because it’s proponents are kinda stupid).
August 17th, 2007 at 12:44 amActually, I am wrong. SMALL businesses will fail. Large corporations are getting the welfare. Good job righties!!!
August 17th, 2007 at 12:47 amI assumed that comment was coming. No, I run a mortgage blog:
http://www.thetruthaboutmortgage.com
I understand where you’re coming from. You’re assuming that because Countrywide is a lender that’s having problems that it will go under.
All I’m trying to add to this conversation is a little bit of factual substance.
I’m not a fan of Countrywide in the least…when I worked in the industry the company annoyed me because it stole a lot of my business.
I’d be the first one to tell you they were going down if I believed that to be the case.
August 17th, 2007 at 12:52 amWayne, I know, the lower case wayne is a dumbass, you aren’t.
Comment by JPark
i dont have a mortgage anymore- as i paid off my home. smartest thing i ever did
August 17th, 2007 at 1:05 amColin,
For those of us who have our home loans with Countrywide: What happens to us if, hypothetically speaking, Countrywide does go belly up?
August 17th, 2007 at 1:17 amRuss
August 17th, 2007 at 1:56 amI am going to guess that who ever Country Wide originated your loan with will still own the loan.
Hey Wayne,
I haven’t checked all the threads from today, has the Dog been around? Heh.
Comment by Zooey
Didn’t see the moron post, but I was fairly busy at work today, got off late and just got back from Denny’s hehe
August 17th, 2007 at 2:01 amStopped at Denny’s because I didn’t feel like cooking dinner tonight.
August 17th, 2007 at 2:03 amStopped at Denny’s because I didn’t feel like cooking dinner tonight.
Comment by Wayne — August 17, 2007 @ 2:03 am
I go to Denny’s when I need to feel young again. :-D
August 17th, 2007 at 2:05 am“it will borrow $11.5 billion in order to keep making home loans”
The question is who is stupid enough at this point to lend them any money? It looks like the adage “a fool and his money are soon parted” applies to the financial system too.
August 17th, 2007 at 2:31 amFunny, I was just laid off by CountryWide two days ago, along with at least 40 other people in our office. Strangely, the fact that CW has started laying off hundreds of people has yet to be reported.
August 17th, 2007 at 4:27 amWell, as P T Barnum once opined “There is a sucker born every minute”. That is what keeps Countrywide advertising. They are hoping for the sucker bailout.
August 17th, 2007 at 7:35 am“Every time I ask one of you lefties who talk big about the muslim I ask them to explain to us his accomplishments.”
Comment by michael — August 16, 2007 @ 10:18 pm
You are seriously interested in the accomplishments of “the muslim”? Hmmm…that would have to be Keith Ellison, the only Muslim we have in our national government at this time.
Since you asked, I direct you to his website, where I found he has introduced a bill having to do with this very thread topic! How’s that for bringing you back on track?
http://www.keithellison.org/news-antipredlend.htm
August 17th, 2007 at 8:17 amBankruptcy?
How lucky they are!!!
But, hey they can file bankruptcy, and you can’t!
August 17th, 2007 at 8:37 am“Every time I ask one of you lefties who talk big about the muslim I ask them to explain to us his accomplishments.â€
Comment by michael
What were George Bush’s accomplishments before he was elected??? Bankrupt oil companies…failed ownership in professional baseball team…drunk and drug addict…
August 17th, 2007 at 8:44 amI agree. Pull those dumbass ads, with Mr. Smiley used car salesman, who depserately needs some Just For Men!
This should be a train wreck of epic proportions. I can only hope those folks struggling to make their monthy mortgage payments don’t get foreclosed and pushed out into the street.
I wonder what P(r)esident Bush thinks of all this? My guess is he isn’t thinking about it at all. He’s going to go for another bike ride on his ranch. You know, his ranch where all the neighborhoods in the surrounding areas have “for sale” signs in every other front yard.
Heckofajob, Bushie!
August 17th, 2007 at 9:03 am#119- I think the president is thinking about this situation, and unfortunately thats a very bad thing, both for the quality of his thinking and his proven ability to royally screw things up.
The Fed just cut their discount window rate by 50 basis points. For a good understanding of whats going on in our financial markets, I highly suggest The Big Picture which cuts through a lot of the economic cheer leading the mainstream media does.
The federal government just stepped in with a massive violation of the free market economy- not to save the poor little guy from loosing his house- but to save banks and hedge funds who were rightly paying for their mistakes of risky, high yield investments. This is moral hazard: the federal government has just told all the hedgies “Risk away boys, we got your back.”
August 17th, 2007 at 10:11 amS&L II…the sequel…
Starring:
August 17th, 2007 at 9:32 pmI’m EXTREMELY worried! I have 4 children and am living on one income – my husband is disabled. We JUST received notice today that Countrywide is recalling our homeloan! We have 30 days to come up with $140,000! THAT’S IMPOSSIBLE ON A 40K a year salary! I don’t have that kind of money just lying around. And now on top of this – we will not only be loosing our home, but loosing approximately 70,000 in equity! Not to mention the money we used to put down as a down payment on the property AND all of the money that we’ve spent towards our mortgage payments thus far!
Do I think Countrywide should STOP advertising? YOU BET I DO! They are trying to screw more people just like me over! I’m trying to refinance my mortgage right now, but I’m having problems getting it done. A lot of mortage companies just don’t want to make new loans right now because of the economy. This is a seriously bad situation for Americans just like myself.
God Bless you all and best of luck to everyone! What ever happened to the American Dream?
August 31st, 2007 at 2:54 pmAnyone interested in helping home owners payoff their mortgage fast and cut out $1000’s in interest should check out the business I’m in. http://www.CaliforniaUffAgent.com
September 14th, 2007 at 4:16 am