Countrywide is a complete disaster!

[cr]

Reminds of that RBS commercial where the guy who took a positive thinking course thinks his positive thoughts rescued them from death.

What they should do is go around to all the people they put in homes they couldn’t afford and restructure their loans to fit something they can afford, and take huge losses in the process.

It’s that or take the losses later on when they sell one of their 319 REO’s in AZ, 367 in CO, 545 in NV, 660 in OH, 773 in FL, 1550 in MI, or 2847 REO’s in CA. And those are just the states I looked at.

http://www.countrywide.com/purchase/f_reo.asp

[4runner]

I do think something needs to be done about the education of the borrower though.

There is much too much blame being directed at the borrowers. The Wall street geniuses who lent money to these borrowers couldn’t figure out that the borrowers were unlikely to be able to pay.

You expect the borrowers to figure that out on their own?

[NotCranky]

If a borrower is truly qualified than the education or lack there of is less of an issue. If the borrower “should” be educated,the point of establishing whether he or she is or is not RE Finance literate, is going to be the person qualifying them. That person and the underwriter should also decide if the customer is a idiot flipper or what have you. These parties do this to protect the lender and so that most loans survived to “season”. It was pretty bad for a loan to fail. Fixed teaser rates probably removed the fear of a loan not seasoning. Borrowers were no more educated when things worked. Originators acted more responsibly because they had to.

That said I don’t blame the originators too much. I do like to blame them because if they practiced the golden rule I don’t think they would have written so much garbage and told so many lies in the process. I know a few who quit or just did loans to good candidates. Most people, including most of us wouldn’t do that and if we did someone else would be put in to push the paper.

In my opinion the source to blame is the Pols/FED/Banks and Wall Street, NAR, BUILDERS…any institution big enough for their complicity to be substantive in maintaining the ridiculous bubble forming pattern. Clearly the public is in a child like state as compared to these parties. To me the parents are selfish,abusive and evasive, but what can we do about it? Nothing so we might as well linger in some nebulous blame game which includes the most ridiculous candidates. That’s our place. Now go “get and spend”.

Yes the FB’s & GF’s are uneducated, , maybe greedy regarding RE, but they did not cause this. As far as I am concerned, all they did is enroll in the school of hard knocks. It is going to be easier to blame them as the get breaks from the “Parents” but that is pedantic too. Obviously, all those parties are trying to help themselves and the borrowers are sometimes lucky beneficiaries.

[kewp]

kewp, if you have time, read the article. Not everyone was trying to get rich quick. Some folks just got in over their heads due to job lay-offs or illness, and that’s life.

I finally got a minute and read through that article.

My opinion remains the same.

If people can’t afford a house with conventional financing, they shouldn’t buy one and if they can’t afford kids plus that house they shouldn’t have them.

We as a society would be much better off for it.

[kewp]

You expect the borrowers to figure that out on their own?

The blame really needs to fall on the people that are supposedly paid to know better, the lenders.

If a doctor or lawyer gives bad advice to one of their customers (especially after being paid), can you really blame them for following it?

[Anonymous]

Countrywide CDs at 5.5% a ‘great deal’…. Most major banks are offering CDs right now at or around 5% – to choose an institution with major monetary issues because of a slightly higher rate due to ‘safety of FDIC insurance’ is foolish.

If anyone remembers what’s it’s like when a bank goes belly-up and you have to deal with the feds to get your insured deposit back? – please share.

For those that don’t know it can take upwards of 6 months after a bank is shut down to get your money back from the feds – in addition you only get the principle – all interest is forfeited.

What a deal!

[bsrsharma]

If anyone remembers what's it's like when a bank goes belly-up and you have to deal with the feds to get your insured deposit back? – please share.

FDIC issues checks usually within 48-72 hours after a bank failure. A bank failure is when either a bank can't pay a depositor or there is a high probability it can't pay. It is a smooth transaction – the only caveat being you get only the insured amount.

For those that don't know it can take upwards of 6 months after a bank is shut down to get your money back from the feds – in addition you only get the principle – all interest is forfeited.

Not true. You get what you are owed, subject to insurance limits. I am not sure if FDIC will give you interest not already in your account. They send out only a handful of regulators and they can't run every banks computer system to calculate up to date interest. Besides, they sometimes keep computer systems for forensic evidence and wouldn't touch it even if they knew how to run the system.

BTW, I opened an account & made a deposit for 5.5% savings. I did some work for RTC during S&L crisis.

[farbet]

CountryFried Financial: “Toxic waste, finger lickin’ good!”

2007-10-04

Lampooning America’s biggest lender, run by America’s most tan CEO, just got easier (As if it weren’t easy enough!). Allow us to present: CountryFried Financial (“CFC”):

Indeed, CountryFried Financial sure makes home loans finger lickin’ good!

Unfortunately, the grease and cholesterol are killers, and if you “eat too much”, it’s likely to impair your health … permanently.

Colonel Sanders never looked so … orange!
http://ml-implode.com/countryfried.html

[Author]

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