Is Countrywide Still Open for Business?
I’ve read numerous blogs and articles in the last couple of days about Countrywide with predictions on both sides. One school of thought is that the lender will be going bankrupt and another is that the infusion of cash in the last few days is proof that the company is still viable. After all, why would banks lend so much money if the ship were sinking. Check out the end of the post for a few of the opinions.
I received this email just a short time ago from Chris Brooks who is one of our local loan consultants with Countrywide. It is the letter released by Countrywide for its consultants to distribute. He gave me permission to use it on my blog.
News about the current state of the mortgage industry can be unsettling for those of us who make our living in this business. This challenging time has brought about greater than usual media coverage of our sector, including coverage about Countrywide.
With all the information that’s being distributed, I wanted to take a moment to personally update you on what’s going on at Countrywide.
We have supplemented our existing liquidity options by infusing an additional $11.5 billion in to our operation through a syndicate of 40 of the worlds largest banks. More than 70 percent of this facility has an existing term of greater than four years.
The $11.5 billion infusion is in addition to our previously announced available liquidity of $48 billion.
We announced our strategy to fund a significant portion of loans through Countrywide Bank, which has approximately $100 billion in assets. Today, we fund approximately 70 percent of our loans through Countrywide Bank, and expect that nearly all of our loan volume will be funded through the bank by the end of September.
We expect that approximately 90 percent of the loans we originate will be eligible for funding through Countrywide Bank or the Government Sponsored Entities (Fannie Mae, Freddie Mac).
Just this week, we increased our product options for fully documented Jumbo loans.
I want to let you know that while this industry turmoil may continue for some time, Countrywide is here to meet the home loan needs of your customers. Countrywide is America’s number one mortgage lender and has been serving real estate professionals just like you for nearly 40 years. We will continue to be here to assist you and your customers.
While the current industry news can be unsettling, know that I am here, backed by Countrywide, to meet your mortgage lending needs. Feel free to contact me directly.
Sincerely,
Chris Brooks
Home Loan Consultant
Countrywide Capitol Hill
Denver, Colorado
Here are links to other interesting articles related to Countrywide from the Inman Blog and some of my favorite bloggers, Jeff Brown, Jay Beckingham and Chris Lengquist.
Countrywide Failing?
A Billion Here, A Billion There and Suddenly You’re Talking Real Money
Everybody Take a Deep Breath — Countrywide isn’t Chrysler
CW The Way I see It
Here is What I Think About Countrywide
Countrywide is still open for business. Most people agree that if you are an “A” borrower, there are plenty of lenders at your service. If there are some challenges in getting a loan, you may want to have a back up plan in the form of an application with a second lender.
Check out www.eyeoncountrywide.info, an independent consumer resource examining sub-prime lending and Countrywide Financial Corporation
Molly, Thanks. I’ll add that to my readling list.
It appears that the website is not as independent as they claim. They clearly have an agenda. The links they present are anti-Countrywide. I’d be curious to see the survey that they’ve sent out to subprime borrowers and how those questions read.
Just a few days before much of the “what’s going to happen to Countrywide” talk started to emerge they purchased the loan origination assets of Homebanc, who just happened to have two loan officers here in my Keller Williams office in Raleigh, North Carolina. Seems odd for someone who is struggling, if that is in fact the case. As of Monday, the 21st, Warren Buffet is rumored to be interested in acquiring some of Countrywide. He doesn’t usually buy companies that can’t make it.
Bob, If those moves don’t tell people something, nothing will. The panic in the media should subside and we’ll all get back to business. It appears that the market is doing well in your neck of the woods.