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#1
10-23-2007, 02:26 PM
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Countrywide to Change Structure On $16B Worth of Loans
Article
[ QUOTE ] Countrywide Financial Corp., the nation's largest mortgage lender, said Tuesday it will begin calling borrowers to offer refinancing or modifications on $16 billion in loans whose interest rate is set to adjust by the end of 2008. Its shares fell more than 4 percent. [/ QUOTE ] [ QUOTE ] The Calabasas, Calif.-based company said it would reach out to borrowers who are current on their loans but are facing an imminent rate reset to discuss options. Countrywide said it would refinance about $10 billion in loans and modify another $4 billion. [/ QUOTE ] [ QUOTE ] It also plans to contact borrowers of some $2.2 billion who are late on their loans and having trouble paying because of a recent rate reset. In total Countrywide's plan would reach out to about 82,000 borrowers for some kind of relief. [/ QUOTE ] Can this be anything more then a temporary fix to the current situation? I am not an expert on this but it would seem to me that all Countrywide is doing is delaying the inevitable. Perhaps some of the real estate gurus could chim in? 
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#2
10-23-2007, 03:09 PM
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Re: Countrywide to Change Structure On $16B Worth of Loans
I'm not sure what type of re-structuring they are planning on doing but it seems like they could keep the payments the same and extend the payment period to like 50 years or something so people just aren't paying much towards their balance at all. Along the same lines they might be switching people over to interest only mortgages.
I wonder if I'll get a phone call one of these days since mine is set to reset in 2010. If they're giving the idiots good deals I hope they give me one too.
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#3
10-23-2007, 04:35 PM
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Re: Countrywide to Change Structure On $16B Worth of Loans
I am sure the deals are better for Countrywide than they are for the individuals receiving them.
I read somewhere that speculated on higher prepayment penalties, so Countrywide can collect when the owner sells his home.
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#4
10-24-2007, 02:28 AM
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Re: Countrywide to Change Structure On $16B Worth of Loans
It's BS. They said essentially the same thing a couple months ago and it turned out they were hardly modifying any loans.
As Cramer says: "Today I see that Countrywide is trying to refinance some of the deadbeat loans. How are they going to do that at 4.75% borrowing costs or higher? How can they? I don't think they can."
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