Countrywide has the properties that are foreclosed and ready for resale on its website: http://www.countrywide.com/purchase/f_reo.asp

There is a blog that has been charting the growth in the number of listings at: countrywide-foreclosures.blogspot.com

If they file for bankruptcy, a court would technically be supervising operations and ensuring that assets are preserved, or at least disposed of in a manner that most benefits the creditors. I suspect that would mean the continued one at a time market price sales, rather than bulk discount sales to others.

If they do file, I would expect the company would exit the loan writing business, but loan servicing- and the related work of disposing REOs- would continue unchanged. Just like the airlines still operate even when in bankruptcy court. If something is producing cash, its worth preserving.

One more thing- It’s not clear to me if Countrywide is truly the owner of record on all those houses, or if they are disposing of them for the bondholders for whom they do the mortgage servicing. Clearly if Countrywide does not really own all these houses, its not for them to decide exactly how to get rid of them.

Countrywide has the properties that are foreclosed and ready for resale on its website: http://www.countrywide.com/purchase/f_reo.asp

There is a blog that has been charting the growth in the number of listings at: countrywide-foreclosures.blogspot.com

If they file for bankruptcy, a court would technically be supervising operations and ensuring that assets are preserved, or at least disposed of in a manner that most benefits the creditors. I suspect that would mean the continued one at a time market price sales, rather than bulk discount sales to others.

If they do file, I would expect the company would exit the loan writing business, but loan servicing- and the related work of disposing REOs- would continue unchanged. Just like the airlines still operate even when in bankruptcy court. If something is producing cash, its worth preserving.

One more thing- It’s not clear to me if Countrywide is truly the owner of record on all those houses, or if they are disposing of them for the bondholders for whom they do the mortgage servicing. Clearly if Countrywide does not really own all these houses, its not for them to decide exactly how to get rid of them.

CFC is the first of the BIG domino pieces to fall….there will be many others to follow.

Check out the problems at Wells Fargo and B of A…. 

Where can I find more info about the US banking sector? I would love to find out more about Wells Fargo and B of A and others such as WAMU.

Thanks

Where can I find more info about the US banking sector? I would love to find out more about Wells Fargo and B of A and others such as WAMU.

Thanks

Then there’s Greenpoint….

“SAN FRANCISCO (MarketWatch) — Capital One Financial said late Monday that it is closing its wholesale mortgage business and cutting 1,900 jobs as the credit card giant loses confidence in the profitability of originating home loans, then selling them in secondary markets.

The company said it will immediately stop originating mortgages through its GreenPoint Mortgage business, which offers loans through brokers.
The company also said it will close GreenPoint’s California-based headquarters along with 31 locations across 19 states. That will mean the elimination of roughly 1,900 jobs, most by the end of 2007.”

My deja vu is pinging so hard I think I’m going to have to go back to the mullet and the Camaro.

Check out the problems at Wells Fargo

I thought Wells Fargo is still AAA rated for both of their banking and mortage (one and only!) Don’t know about B of A.