Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
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Bringing the House Down !
the Rise  and now the FALL OF COUNTRYWIDE ..................................

COUNTRYWIDE WOES MOUNT

By ZACHERY KOUWE

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November 24, 2007 -- Investors in Countrywide Financial, the nation's largest mortgage lender, have been taken on a wild ride over the last month.

This week, Countrywide was forced to publicly deny rumors that it was on the verge of bankruptcy as its stock sank to a low of $8.21 before recovering slightly.

Further adding to its troubles, Edward Jones analyst Patrick Schumann cut his rating on the company, citing potential cash shortages if government-backed Fannie Mae and Freddie Mac curb their purchases of Countrywide's mortgages.

It's a far cry from late October, when Countrywide CEO Angelo Mozilo said he expected the fourth quarter to be profitable - comments that drove the stock up to $17.11 the next day.

But over the last few weeks, investors have begun to believe that Mozilo's pledge could be tough to achieve as Countrywide's mortgage originations fall and the available capital to fund new mortgages shrinks.

"There is a reasonable possibility of a dividend cut," Schumann said. "If this dislocation proves to be longer in duration, or if conditions materially worsen, we believe that could further pressure Countrywide's financial position."

The mortgage giant's stock is now trading at nearly half the $18 conversion price for the $2 billion of preferred stock that Bank of America bought back in August. Shares closed at $9.65 yesterday.

Countrywide is facing mounting foreclosures and loan delinquencies from borrowers who were hoping to refinance before their low-interest teaser rates soared. The company has said that nearly 24 percent of the $118 billion in its subprime servicing portfolio is in some stage of delinquency. That equals about $27 billion.

The company said this week that it had ample liquidity to continue funding new mortgages through next year and said it had $35.4 billion in "highly-reliable liquidity" as of the end of October.

But some analysts say that may not be enough if homeowners continue to default on their mortgages and the secondary market remains closed to the company.

Countrywide has become a poster child for the housing crisis and having lost nearly $25 billion in market value over the last nine months. Countrywide has already laid off about 12,000 employees and some insiders expect that to rise to 20,000 as mortgage originations plummet.

Sources close to Countrywide said Mozilo has been urged by advisers to eliminate the company's dividend, which could save about $350 million a year.

zachery.kouwe@nypost.com

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Eliminate dividends?

That's great strategy to raise investor interest.

The stock has already tanked down to around $8.00.

Lol...

I've put a hold on buying this stock.

Dee
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..
Awww
Countrywide has become a poster child for the housing crisis and having lost nearly $25 billion in market value over the last nine months. Countrywide has already laid off about 12,000 employees. Awww

The only people I feel sorry for here would be the mailroom clerks, or the janitorial staff. Those are the only people I can think of that would not be "directly" involved with the fraud that has brought the company to its knees.
Hopefully a majority of the 12,000 laid of employess are the Customer Service Representatives, who will get ticked off enough about losing their job, they will help testify against their once upon a time employer.It really sucks for them that the fraud has consumed their lives as well. It's a pitty, they couldn't see this when they were helping the company defraud American Citizens. No I don't feel sorry for them. Give it a few months and they will be getting really ticked and peeved off to no end, especially once, all their savings have dried up, too bad they'll get no more bonuses the executives? pft.... they probably got really great severance packages to hold them for a year or so. Soon enough, they'll be looking for justification too. hmmm, I wonder how many of these people laid off have Mortgage loans with Countrywide? ha ha ha, that would be interesting.

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Ed Cage

We had Thanksgiving dinner with a long time friend who works at Countrywide.  It’s right here in Plano and it also used to be one of my accounts.  I’ve been to their gigantic location a number of times. My wife and I’s friend currently works at CW but wants out badly.. (Hates it there.)  I did not ask any questions or specifics but our friend said they were not in the “mortgage sector” of CW; whatever that means.  I thought it was all mortgage.

Mr Ed

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Your friend may have worked in the "banking" sector of CFC. Should be easy enough for your wife to find out, Ed. She works for KPMG doesn't she?

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Stephen

Mozillo - Another immigrant gangster, like Arnall.

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O -

This is for sure Stephen.


Stephen wrote:

Mozillo - Another immigrant gangster, like Arnall.

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anon2

Please don't insult immigrants by including those losers.

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