| Author | Thread |
|
|
08/17/2007 11:13:05 AM · #26 |
Originally posted by Matthew:
Originally posted by Spazmo99:
Better hope something good happens. Since CW holds nearly 20% of the mortgages in the US, the fallout of such a bankruptcy would have serious negative effects on the entire US economy. |
I have liquidated banks before. The consequences for consumers with mortgage commitments are not quite as bad as it sounds - the debt is still repayable on the terms of the mortgage, probably managed by a new purchaser of the loan book. The original company will no longer new business but the elimination of an unprofitable business is not a bad thing as a whole - instead, other, better-run businesses will have a bigger market share.
The people who suffer are the depositors and the commercial banks that had lent to the bankrupt bank. They will only get a proportion of their lending back. |
Given the problems of the mortgage industry and the magnitude of CW's holdings, I'm not sure the remainder of the industry can purchase all of those loans |
|
|
|
08/17/2007 11:15:54 AM · #27 |
Originally posted by Matthew:
The people who suffer are the depositors and the commercial banks that had lent to the bankrupt bank. They will only get a proportion of their lending back. |
I once heard a quote, original source unknown: "Borrow a little money, and the bank owns you. Borrow enough money, and you own the bank."
|
|
|
|
08/17/2007 11:36:48 AM · #28 |
Originally posted by Spazmo99:
Have you ever thought that maybe for 99.99999% of their actual customers the service from CW is excellent and that your case is the abberration?
Of course, I'm sure you are perfect and have never dialed a wrong number.
Your problem is that you want everyone else to meet your standards.
It must be so hard to be perfect when others are not. |
I'm sure YOU'RE perfect and have never been frustrated with anyone's customer service. |
|
|
|
08/17/2007 11:58:03 AM · #29 |
Originally posted by chip_k:
Originally posted by Spazmo99:
Have you ever thought that maybe for 99.99999% of their actual customers the service from CW is excellent and that your case is the abberration?
Of course, I'm sure you are perfect and have never dialed a wrong number.
Your problem is that you want everyone else to meet your standards.
It must be so hard to be perfect when others are not. |
I'm sure YOU'RE perfect and have never been frustrated with anyone's customer service. |
Nope, but I've never started a rant about a wrong number either. |
|
|
|
08/17/2007 12:05:41 PM · #30 |
Originally posted by Spazmo99:
Given the problems of the mortgage industry and the magnitude of CW's holdings, I'm not sure the remainder of the industry can purchase all of those loans |
The problem will not be finding a purchaser, but getting a decent price.
|
|
|
|
08/18/2007 08:23:03 AM · #31 |
The thing that worries me (sincerely worries me because I live in the US) is that the US federal reserve board is contemplating reducing the interest rates for consumers (they only reduced interest rates for banks borrowing money). Way to solve the problem of people in debt - let them get into more debt!!!
The situation is f-ed up! fasten your seatbelts y'all. We're going down... again (like in 2000/2001)
LoudDog, I hear you - 401(k)-related. |
|
|
|
08/18/2007 11:24:07 AM · #32 |
Originally posted by srdanz:
The thing that worries me (sincerely worries me because I live in the US) is that the US federal reserve board is contemplating reducing the interest rates for consumers (they only reduced interest rates for banks borrowing money). Way to solve the problem of people in debt - let them get into more debt!!!
The situation is f-ed up! fasten your seatbelts y'all. We're going down... again (like in 2000/2001)
LoudDog, I hear you - 401(k)-related. |
Well, yes and no. From a practical standpoint, a rate cut makes adjustable rate loans more affordable (lots of ARMs still out there, remember), and those with fixed rates above the current market rates often refinance. But this generally only happens after several consecutive Prime cuts. I'll be surprised if Bernanke doesn't cut Prime by the same amount at the next meeting. In the meantime, cutting the discount rate (the rate that has been cut by a half point) in theory helps Countrywide get through their rough patch at a lower cost, allowing them to borrow from the Fed at a lower rate.
Message edited by author 2007-08-18 11:25:04.
|
|
|
|
08/18/2007 05:30:53 PM · #33 |
Originally posted by srdanz:
The thing that worries me (sincerely worries me because I live in the US) is that the US federal reserve board is contemplating reducing the interest rates for consumers (they only reduced interest rates for banks borrowing money). Way to solve the problem of people in debt - let them get into more debt!!!
The situation is f-ed up! fasten your seatbelts y'all. We're going down... again (like in 2000/2001)
LoudDog, I hear you - 401(k)-related. |
Reduce rates for banks, allow banks to lend at lower rates...
|
|
|
|
08/18/2007 07:40:04 PM · #34 |
Why not just print money... a little bit of inflation, nobody gets hurt. People that owe money today would owe the same amount in $$, but it would be worth 1/2 of the original debt.
To count on banks to voluntarily reduce their profits is unreasonable.
This is tongue in cheek, for those that believe that I would really recommend printing money. Although it is not out of question... |
|
|
|
08/18/2007 08:59:39 PM · #35 |
I had a similar problem last year. I got a new cell phone, and kept getting calls from collection agencies for "Nicole." Most of them went away quickly, once I told them that Nicole didn't have the number anymore. But one particular collection agency, which apparently specializes in collecting on debts that the other ones have given up on, had Nicole in their autodial system, and I was getting automated calls about twice a day. For months. During that time, I regularly attempted to talk to them and explain that I wasn't Nicole. At one point after actually getting a person on the line, and talking to him, the calls stopped for 2 weeks. Then started up again. I tried calling the cell phone company, but they were no help.
What finally worked was I googled the phone number, got the collection agency's name and address, and reported them to their local better business bureau. About 6 weeks later, I got an email from the BBB asking if the problem was resolved. The same day, the calls stopped, and I haven't had a problem since. |
|
|
|
08/19/2007 11:31:38 AM · #36 |
Originally posted by Spazmo99:
The government would be stupid to let Countrywide fail. CW represents nearly 20% of the mortgages in the US, by far the largest US mortgage lender, possibly the largest worldwide. If they declare bankruptcy, their loans will have to be sold. It's unlikely that the rest of the mortgage banking industry, let alone, one institution, has enough capacity to absorb and service all of those loans. |
The reason that all of these mortgage companies are in trouble is due to their own stupidity. They made loans to people at interest rates, loan to value and credit standards that had no basis in sound economics or credit judgement. Sorry, but a family earning $75,000 had no business in a $600,000 home.
The best thing we can all do is let the invisible hand work everything out. Yes there will be pain, but in the long run it will be healthy. Equillibrium will be restored. Mortgages will become available to those who can realistically pay them at amounts that reflect the borrowers capacity and at a realistic loan to value ratio. That means that borrowers will again have to save up for a down payment. The bright side to some aspiring home owners here will be the dramatic readjustment of housing prices across the nation to reflect income levels of buyers. Of course those who purchased in the frenzy of the past few (flip this house) years will be underwater for quite some time.
As for the hedge funds and other institutional buyers of the now worthless and impaired loans - oh well. These institutions got caught up in the same mania and frenzy as the dot com investors a decade ago.
And for Countrywide, it would be bad policy to bail them or any other private business out. Letting the weak, short sighted, greedy and yes stupid fail is good for all of us in the long run. Additionally, as a taxpayer I would totally resent my taxes going for any such purposes. |
|
|
|
08/19/2007 12:37:51 PM · #37 |
Originally posted by srdanz:
Why not just print money... a little bit of inflation, nobody gets hurt. People that owe money today would owe the same amount in $$, but it would be worth 1/2 of the original debt.
To count on banks to voluntarily reduce their profits is unreasonable.
This is tongue in cheek, for those that believe that I would really recommend printing money. Although it is not out of question... |
Actually, it's been done before. When prices began to skyrocket after 9/11, the first thing Greenspan did was run the presses 24/7 for a couple weeks to flood the marketplace with cash. It kept inflation in check.
|
|
|
|
08/19/2007 03:13:21 PM · #38 |
Originally posted by photodude:
Originally posted by Spazmo99:
The government would be stupid to let Countrywide fail. CW represents nearly 20% of the mortgages in the US, by far the largest US mortgage lender, possibly the largest worldwide. If they declare bankruptcy, their loans will have to be sold. It's unlikely that the rest of the mortgage banking industry, let alone, one institution, has enough capacity to absorb and service all of those loans. |
The reason that all of these mortgage companies are in trouble is due to their own stupidity. They made loans to people at interest rates, loan to value and credit standards that had no basis in sound economics or credit judgement. Sorry, but a family earning $75,000 had no business in a $600,000 home.
|
I don't disagree, and I have no clue why there was a housing price bubble, but there was. shacks (and i mean a shack) in south central LA were going for $150-200k! In the ghetto. What's the poor to do? $20k a year or less can't live in a house at that price!
The 'solution' many found was to get an interest-only ARM for 5 year with a balloon and just sell and get a new house in 4 years before the balloon was due. Worked fine as long as houses were selling, or appreciating. Now folks are in houses they can't sell for what they owe and the balloons are coming due, and they can't pay them. One can blame the banks, but whatever happened to personal responsibility? When I bought 10 years ago I didn't spend as much as I was approved for because I felt it was too much and the payment would kill me!
One thing people and banks don't think of as 'debt' but still sucks your money are things like utility bills (cell phones, etc), Tivo, internet, cable, NetFlix...people should give 'em up and pay their bills instead!
To the OP - good luck with this. |
|
|
|
08/20/2007 12:03:08 AM · #39 |
Originally posted by photodude:
Originally posted by Spazmo99:
The government would be stupid to let Countrywide fail. CW represents nearly 20% of the mortgages in the US, by far the largest US mortgage lender, possibly the largest worldwide. If they declare bankruptcy, their loans will have to be sold. It's unlikely that the rest of the mortgage banking industry, let alone, one institution, has enough capacity to absorb and service all of those loans. |
The reason that all of these mortgage companies are in trouble is due to their own stupidity. They made loans to people at interest rates, loan to value and credit standards that had no basis in sound economics or credit judgement. Sorry, but a family earning $75,000 had no business in a $600,000 home.
The best thing we can all do is let the invisible hand work everything out. Yes there will be pain, but in the long run it will be healthy. Equillibrium will be restored. Mortgages will become available to those who can realistically pay them at amounts that reflect the borrowers capacity and at a realistic loan to value ratio. That means that borrowers will again have to save up for a down payment. The bright side to some aspiring home owners here will be the dramatic readjustment of housing prices across the nation to reflect income levels of buyers. Of course those who purchased in the frenzy of the past few (flip this house) years will be underwater for quite some time.
As for the hedge funds and other institutional buyers of the now worthless and impaired loans - oh well. These institutions got caught up in the same mania and frenzy as the dot com investors a decade ago.
And for Countrywide, it would be bad policy to bail them or any other private business out. Letting the weak, short sighted, greedy and yes stupid fail is good for all of us in the long run. Additionally, as a taxpayer I would totally resent my taxes going for any such purposes. |
I agree that, people earning $75K have no business with a $600K home and there's no doubt that the system allowed that.
The problem is that many credit worthy borrowers who are not trying to buy more house than they can afford are being shut out. |
|
|
|
08/20/2007 12:07:14 AM · #40 |
Originally posted by Spazmo99:
The problem is that many credit worthy borrowers who are not trying to buy more house than they can afford are being shut out. |
I'd like to know what gives you this idea? I've never heard of a lender turning down a reasonably low risk loan.
|
|
|
|
08/20/2007 02:02:14 PM · #41 |
|
|
|
08/20/2007 02:15:10 PM · #42 |
How funny is this? :)
It's a screen capture of the article linked above. Notice the advertising banner at the top? :P |
|
|
|
08/20/2007 03:23:52 PM · #43 |
Originally posted by glad2badad:
How funny is this? :)
It's a screen capture of the article linked above. Notice the advertising banner at the top? :P |
Did you try clicking on it? Error 404? |
|
|
|
08/20/2007 03:37:38 PM · #44 |
Originally posted by chip_k:
Countrywide Home Loans Is Satan's Bunghole!!! |
Thus fulfilling the prophecy:
"And Satan shall send forth his bunghole and lo, it shall come from the west in the form of a diversified financial service holding company engaged primarily in residential mortgage banking and related businesses."
--Revelation 22:22 |
|
|
|
08/20/2007 08:07:28 PM · #45 |
Originally posted by Art Roflmao:
Originally posted by chip_k:
Countrywide Home Loans Is Satan's Bunghole!!! |
Thus fulfilling the prophecy:
"And Satan shall send forth his bunghole and lo, it shall come from the west in the form of a diversified financial service holding company engaged primarily in residential mortgage banking and related businesses."
--Revelation 22:22 |
--Revelation 22:23-4
And the bunghole shall call throughout the land with automatic dialing; and whoever answers the call shall be driven unmercilessly through a hellish labyrynth of automated voices, all denying access to a human voice! Yea, this will last through the end of time!
Still getting calls from them. :) |
|
|
|
08/26/2007 02:55:20 AM · #46 |
| Chip, are you still getting calls from them? I can get ahold of their account manager a Sprint for you if they are. |
|
|
|
08/26/2007 01:45:53 PM · #47 |
Originally posted by wavelength:
Chip, are you still getting calls from them? I can get ahold of their account manager a Sprint for you if they are. |
No, I'm not. They stopped not long after my last post.
Thanks VERY MUCH for asking though! It's really appreciated! |
|
|
|
08/31/2007 12:59:26 PM · #48 |
| Hey spazmo99 I want to respond to your remark on 8-17. Have you ever heard of an appraisal, or employment verification???? When applying for a mortgage your home requires an appraisal which the mortgage company sets up so virtually there is no way an individual can inflate the value their home. You also have to provide your income tax refunds to verify your income, so how exactly can you claim that you make more then what appears on your tax returns??? The mortgage company is the one that hires an appraisal firm so if the value of any given piece of property is inflated the mortgage company is the contracting party to the appraisal company not the borrower. Countrywide sucks, period!!! There is no value placed on customer service!!! I have been with CW for three years and have never gotten the same answer twice to any given question that I have had to ask. If they go under, it serves them right!!! Just like Fairbanks Mortgage they went bankrupt because of the same problems that CW now is having. If they treated their current customers fairly and with respect the could possibly retain their customers but they don't. |
|
|
|
01/11/2008 11:15:27 AM · #49 |
Looks like Bank of America is taking over Countrywide
Now i'll get even MORE credit card offers. Just great :/
Message edited by author 2008-01-11 11:15:46. |
|
|
|
01/15/2008 12:45:49 PM · #50 |
Originally posted by kat911:
Hey spazmo99 I want to respond to your remark on 8-17. Have you ever heard of an appraisal, or employment verification???? When applying for a mortgage your home requires an appraisal which the mortgage company sets up so virtually there is no way an individual can inflate the value their home. You also have to provide your income tax refunds to verify your income, so how exactly can you claim that you make more then what appears on your tax returns??? The mortgage company is the one that hires an appraisal firm so if the value of any given piece of property is inflated the mortgage company is the contracting party to the appraisal company not the borrower. Countrywide sucks, period!!! There is no value placed on customer service!!! I have been with CW for three years and have never gotten the same answer twice to any given question that I have had to ask. If they go under, it serves them right!!! Just like Fairbanks Mortgage they went bankrupt because of the same problems that CW now is having. If they treated their current customers fairly and with respect the could possibly retain their customers but they don't. |
In my job I audit 60-70 mortgage loans per month. The company I work for contracts with three mortgage insurance companies and as a whole we audit 2000 loans per month. The number of fraudulent appraisals we see is astounding. Last week one of my coworkers was working through a loan file and in the midst of the appraisal was a note "Bob, looks like this one is going to come in at $320k, do you need me to punch it up to $350 to make it work?" He did the loan was underwritten at $350,000. We ordered a review appraisal and the value at the time of the transaction should have been $320,000. This is not remotely the worst I have seen either. I am currently working 10 files from one borrower (an investor) he purchased run down, near collapse houses all through Atlanta and the south- we estimate he purchased 60-70 properties total- most of his purchases were 80,000-90,000, but the actual property values were 20,000 to 30,000 dollars. The three sellers that I have been able to speak with sold the properties for what they thought was the appraised value. The appraiser(s) working with my borrower would prepare two appraisals, one for the loan company and one for the seller. The borrower would then walk away with about 50,000 to 60,000 in each transaction. What we haven't worked out is how he managed to get the cash from the closing companies without them writing a check to the seller. We think the three title companies were involved- all three have since ceased operations and good luck finding someone now.
The above case I am working on is not an exception. Its a bit more extreme than some. But every week I see files with phony employment, full doc loans with check stubs, W-2's, and VOE's. All of which is doctored up.
And I haven't even started to talk about the abuses of stated and no-doc loans.
Anyone know who Casey Serin is? |
|
