Countrywide may have already off-loaded this loan to the Federal Government through one of the Federal Home Loan Banks (FHLB). The FHLBs have bought something like $200 billion of Countrywide loans in recent weeks. So its likely that the American taxpayer owns this loan and Countrywide is just the servicer. As the loan servicer, Countrywide probably doesn’t care what the interest rate is.
When Countrywide next reports earnings, I wouldn’t be surprised to see a lot of their bad loans off-loaded to the FHLBs. This allows Countrywide to go on making bad loans while the American taxpayer foots the bill. God bless America and Angela Mozilla.
