And Countrywide carries the whole market up on their “positive outlook” for end of next year.
27.8 billion of Countrywide banks mortgage investments are in risky Option Arms that are way behind in payments (over 3.5 are more than 60 days in arrears, and almost 6% over 30 days in arrears) Loans sold are a third of 2006 levels
Countrywide took a 900 Million write down to cover “Junior and option ARM” losses. That does not even cover the ones currently underwater. Next quarter/year are going to be worse. Who is buying this stock and what are they thinking.
If you take the time to look at the 9 month balance sheet thru september (2006 vs. 2007) some of it is just smoke and mirrors. 4 Billion increase in value of loan servicing business, big increase in value of loans held for investment, but decrease in receivables on same. Pure smoke.