What happens to my mortgages if CountryWide goes bust?

[mtgordon]

Why are you transferring to an account that pays less(if I remember correctly)?

[Fishhead24]

[ QUOTE ]
Why are you transferring to an account that pays less(if I remember correctly)?

[/ QUOTE ]

For a measly 0.35% more on ones money, Countrywide is not worth the minor worry they are presenting to their customers right now.

Countrywide 5.4%
E-trade 5.05%

[Fishhead24]

[ QUOTE ]
[ QUOTE ]
Why are you transferring to an account that pays less(if I remember correctly)?

[/ QUOTE ]

For a measly 0.35% more on ones money, Countrywide is not worth the minor worry they are presenting to their customers right now.

Countrywide 5.4%
E-trade 5.05%

[/ QUOTE ]

Make no mistake about it, there is a huge run on the bank at Countrywide currenly........as there are thousands more thinking the same thoughts as myself.

[gonebroke2]

Class-action lawsuit by employees against Countrywide after their 401k's got destroyed. Reminds me of Enron. Hopefully the CEO of Countrywide has the same fate as Kenneth Lay.

http://money.excite.com/jsp/nw/nwdt_ge.j...ias/money/cm/nw

[pig4bill]

Wow, look what happened with AHM:

http://online.wsj.com/article/SB1189...googlenews_wsj

[ QUOTE ]
Thousands of homeowners face an "imminent risk" of losing their homes because of clashes between American Home Mortgage Investment Corp. and its former financial backers, according to Freddie Mac, a government-chartered housing financier.

In documents filed with the U.S. Bankruptcy Court in Wilmington, Del., Freddie Mac said it seized $7 million that homeowners sent to American Home to cover principal and interest payments, property taxes and insurance just before the company's Aug. 6 collapse. American Home quit making payments to tax authorities and insurance companies Aug. 24.

[/ QUOTE ]

Guess that's a possibility with Countrywide as well.

[Phone Booth]

[ QUOTE ]
Wow, look what happened with AHM:

http://online.wsj.com/article/SB1189...googlenews_wsj

[ QUOTE ]
Thousands of homeowners face an "imminent risk" of losing their homes because of clashes between American Home Mortgage Investment Corp. and its former financial backers, according to Freddie Mac, a government-chartered housing financier.

In documents filed with the U.S. Bankruptcy Court in Wilmington, Del., Freddie Mac said it seized $7 million that homeowners sent to American Home to cover principal and interest payments, property taxes and insurance just before the company's Aug. 6 collapse. American Home quit making payments to tax authorities and insurance companies Aug. 24.

[/ QUOTE ]

Guess that's a possibility with Countrywide as well.

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Given how large Countrywide's servicing portfolio is - estimated at over one trillion; note that your loan doesn't have to have been originated by Countrywide to be serviced by them as they had been an active buyer of servicing rights in the secondary market - I wouldn't worry too much. If Countrywide starts screwing up their servicing on a large scale, there will be intervention.

[Fishhead24]

OK, major update.......Went into my local CW bank branch today to withdraw a few bucks..........and was greeted by a waiting line ten customer based deep(usually no one in there at all).

I thought "oh [censored]", the run on the bank is in full force here in Clearwater.

Well, the was only ONE employee in the joint and he was handling all the transactions in the front and I could clearly hear what everybodys personal banking transactions were. Get this, ALL of them were making significant deposits into the higher rated CD'S the CW is currently offering, such as 5.65% on 12 month CD's.

Thoughts?

[Fishhead24]

[ QUOTE ]
OK, major update.......Went into my local CW bank branch today to withdraw a few bucks..........and was greeted by a waiting line ten customer based deep(usually no one in there at all).

I thought "oh [censored]", the run on the bank is in full force here in Clearwater.

Well, the was only ONE employee in the joint and he was handling all the transactions in the front and I could clearly hear what everybodys personal banking transactions were. Get this, ALL of them were making significant deposits into the higher rated CD'S the CW is currently offering, such as 5.65% on 12 month CD's.

Thoughts?

[/ QUOTE ]

They are running major ads on CNBC and the local fishwraps.

[Korch]

[ QUOTE ]
Countrywide is the largest lender in the country in terms of dollars. They are NOT going bust. They have 5% of their loans in the subprime market. The market as a whole has 15% subprime loans. They are downsizing because the mortgage business is slowing down a lot due to the overall slowdown of the housing market. Dont believe the hype.

[/ QUOTE ]

I'd say they're 15-20% to go bust in 5yr. 10% or so in the next year.

[Fishhead24]

The guy at CW told me yesterday that the SUBprime was not the problem ...........it actually was the PRIME loans that were causing the crunch.