Countrywide may feel subprime earnings drag
Shares of largest U.S. Mortgage lender fall as it says it has some exposure to the troubled U.S. Subprime mortgage market.
Countrywide said it was tightening its underwriting standards, adding that nonprime loans were only 7 percent of its funding volume in February.
The move comes amid surging defaults in mortgages made to borrowers with weak credit or inadequate documentation, as underwriting standards industry wide have proven too weak.
Countrywide told its brokers Friday to stop offering borrowers the option of taking out a mortgage without a down payment, according to a document obtained by Reuters. Other lenders have made similar changes.
Generally, the bulk of subprime delinquencies are coming from loans made last year that are as little as one month old, making 2006 perhaps the worst ever in terms of mortgage credit quality, according to analysts at UBS Securities.
How much longer can their scam go on? You can't keep forcing your phone refi monkeys to keep putting these people in your SMART CHOICE, SECURE ADVANTAGE LOANS ETC. These are not safe loans for most of the public and countrywide is soon finding that out. I'd like to hear from some of the folks at COUNTRYWIDE about how they feel about the company that sales it products?
Will COUNTRYWIDE be happy with the way Quicken bankers are forced to sale the WRONG loans for people who shouldn't have them. How would the STATE ATTY GENERAL FEEL IF HE/SHE looked at this website? Hmmm. That old ISM "Do the right thing" is looking more like - do the wrong thing.
Go back to sleeping with one eye open knowing that the 462 people you OWE who made you BILLIONS of bucks is out there in need of their BACK PAY FROM WORKING OVERTIME without pay - DAN GILBERT says "Keep hiring the masses, and keep kicking them a*, replace the worn out ones with new masses" THE AMERIQUEST BUSINESS PLAN TO GETTING RICH IN AMERICA.
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