In Depth Analysis: CalculatedRisk Newsletter on Real Estate (Ad Free) Read it here.

Monday, March 12, 2007

Countrywide Tightens Lending Standards

by Calculated Risk on 3/12/2007 03:46:00 PM

From CNNMoney (hat tip Anthony): Countrywide may feel subprime earnings drag

Countrywide told its brokers Friday to stop offering borrowers the option of taking out a mortgage without a down payment ...
UPDATE: From Reuters: Countrywide says subprime turmoil may harm results
Countrywide Financial Corp. ... said on Monday that foreclosures rose to a five-year high and turmoil in the subprime market may hurt earnings ...

The increase in foreclosures is the latest sign of stress in the mortgage lending sector, which is struggling with mounting losses and rising defaults.
Countrywide said the foreclosure rate rose to 0.70 percent from January's 0.69 percent and last February's 0.47 percent.

It also said 4.71 percent of loans were at least 30 days past due, the same as in January and up from 4.29 percent last February. The rate matched the second-highest level over the last five years.
And from the Broker's Grapevine (caution should be used when reading these posts): Is Countrywide subprime no longer in business?
I just looked at the matrix. Max CLTV for any score or doc type subprime is 90%.
by Kyle@CreveCor March 12, 2007

my rep says they got rid of middle management. and cutting reps from 9 to 4. said a 80/20 the first will have a rate of around 10%. hang on ya´ll
by diva for loans March 12, 2007

I was an AE with them....I was let go as of this morning. From what I understand, about 70% of the outside sales force was fired today. On top of that a lot of the middle management was fired as well. Next step will of course be Ops staff.

Not sure if they´ll stick around or not...but they will be much smaller than before.

by MakinDreams March 12, 2007