Mortgage Market News: Countrywide Continues to Struggle
The largest mortgage lender in the nation, Countrywide, has been have trouble for quite sometime. Subprime mortgage writedowns have plagued the company, and as the foreclosure rate rises, so do delinquencies on Countrywide home loans. The Motley Fool reports on the bad news for Countrywide:
Last week, the California-based home lender reported a nine-fold jump in delinquencies of at least 90 days in the past year, now totaling 5.4% of its $28.4 billion adjustable-rate mortgage pool. Perhaps more alarming was that 71% of borrowers from that pool chose to make the absolute minimum payment necessary, which doesn’t even cover total interest accrued, thus pushing loan balances higher every month.
Additionally, Countrywide has sustained losses due to home equity lines of credit — to the tune of $704 million in 2007.
But all that will soon be water under the bridge, right? After all, Bank of America has offered to buy Countrywide. But until the deal actually happens, there’s always a chance it will be scuttled. And Bank of America may balk as more mortgage market news, especially concerning Countrywide, rolls in.
If the deal is broken, then it means a very long haul on the road to mortgage market recovery. And those with Countrywide stock could find themselves stuck with large losses. But if it does go through, those who buy Countrywide stock now may be handsomely rewarded.
Disclaimer: I am not an investment professional. Nothing in this piece should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional.
Tags: mortgage loan blog, mortgage market news, home mortgage loan, home equity lines of credit,
Bank of America Countrywide, subprime mortgage writedowns, Countrywide stock news
March 5th, 2008 at 7:39 pm
[…] George PurdynHSubprime mortgage writedowns impact plagued the company, and as the foreclosure appraise rises, so do delinquencies on Countrywide activity loans. […]
March 5th, 2008 at 7:55 pm
[…] Mike HallnHSubprime mortgage writedowns impact plagued the company, and as the foreclosure appraise rises, so do delinquencies on Countrywide activity loans. […]
March 5th, 2008 at 9:46 pm
[…] Meg MarconHSubprime mortgage writedowns impact plagued the company, and as the foreclosure appraise rises, so do delinquencies on Countrywide activity loans. […]
March 5th, 2008 at 9:50 pm
[…] News: Countrywide Continues to Struggle Published in March 5th, 2008 Posted by in Uncategorized Mortgage Market News: Countrywide Continues to Struggle Mortgage Market News: Countrywide Continues to Struggle By Miranda Marquit | March 5th, 2008 The […]
March 5th, 2008 at 10:07 pm
[…] unknownnHSubprime mortgage writedowns impact plagued the company, and as the foreclosure appraise rises, so do delinquencies on Countrywide activity loans. […]
March 6th, 2008 at 8:15 pm
[…] January, Bank of America announced that it would buy Countrywide. Countrywide, the largest mortgage loan servicer in the US, is suffering a great deal from continued …. Even in light of the latest numbers about the massive bleeding going on at Countrywide, Bank of […]
March 8th, 2008 at 7:54 pm
[…] Jill DentonnHSubprime mortgage writedowns impact plagued the company, and as the foreclosure appraise rises, so do delinquencies on Countrywide activity loans. […]
March 10th, 2008 at 1:32 pm
[…] The latest news in terms of mortgage lenders is the current report circulating that the FBI is investigating Countrywide. Countrywide is the largest of home lenders in the US, and one of the biggest subprime lenders. Countrywide has been sustaining serious losses due to subprime writedowns and foreclosures. Since the subprime mortgage crash, Countrywide has lost billions of dollars. Indeed, in an effort to stem the flow, Countrywide has agreed to entertain an offer by Bank of America to purchase the ailing company. […]
March 11th, 2008 at 5:52 pm
[…] wemedianHSubprime mortgage writedowns impact plagued the company, and as the foreclosure evaluate rises, so do delinquencies on Countrywide activity loans. […]
June 6th, 2008 at 10:54 pm
[…] The latest news in terms of mortgage lenders is the current report circulating that the FBI is investigating Countrywide. Countrywide is the largest of home lenders in the US, and one of the biggest subprime lenders. Countrywide has been sustaining serious losses due to subprime writedowns and foreclosures. Since the subprime mortgage crash, Countrywide has lost billions of dollars. Indeed, in an effort to stem the flow, Countrywide has agreed to entertain an offer by Bank of America to purchase the ailing company. […]