They will be owned by BofA or Chase within a week or two at $10 a share
..
No, I am aware of their multiple arms including Landsafe Title, insurance services etc. They been talking about becoming a traditional bank for a long time. BofA I believe in the past had many attempts to merge or takeover CW in the past.
I thought that you said that I said that you implied what I inferred.
Sounds like CW will have enough capital to avoid bankruptcy through 08.
Loans will be funded in house.
Things are very tight.
Applicants better be golden and have a nice down pmt or no deal.
Be ready for even higher rates.
That is exactly what the company wide email said they were planning on doing by the end of Sept. hence my post of moving from wholesale lender to a "Bank".
Reading is fundemental. (Touche)
I don't believe their new plan is to become a bank, per say. I believe their intentions are to become strictly a retail lender. They are already a retail lender and have already been cutting off or absorbing their correspondent lenders. They are essentially declining all broker submissions, at least all the ones that I have knowledge of, and not purchasing loans that were funded by their correspondent relations. Essentially crippling these companies. This is why you hear of all the lenders closing their doors over the last two weeks. Countrywide is not the only one doing this. These lenders fund these loans then are not able to sell them to the investors like Countrywide because the investors won't buy them since they have no buyers on the open market. What happens next is that the investors(countrywide and other big names) essentially give the lenders a margin call. Since they don't have the funds to repay the millions they have outstanding in funded loans they close the doors. This in turn hurts the investors(CW and others) since they are now owed boat loads of money by companies that are closed and forced into bankruptcy. Countrywide has been trying to buy up some of these companies instead of just closing them down but this is essentially just moving the losses on the books. Confused yet?
So anyways. I don't think Countrywide is planning on open up bank branches which is probably not what you meant but many people may have misunderstood.
Jeez I type too much
I don't believe their new plan is to become a bank, per say. I believe their intentions are to become strictly a retail lender. They are already a retail lender and have already been cutting off or absorbing their correspondent lenders. They are essentially declining all broker submissions, at least all the ones that I have knowledge of, and not purchasing loans that were funded by their correspondent relations. Essentially crippling these companies. This is why you hear of all the lenders closing their doors over the last two weeks. Countrywide is not the only one doing this. These lenders fund these loans then are not able to sell them to the investors like Countrywide because the investors won't buy them since they have no buyers on the open market. What happens next is that the investors(countrywide and other big names) essentially give the lenders a margin call. Since they don't have the funds to repay the millions they have outstanding in funded loans they close the doors. This in turn hurts the investors(CW and others) since they are now owed boat loads of money by companies that are closed and forced into bankruptcy. Countrywide has been trying to buy up some of these companies instead of just closing them down but this is essentially just moving the losses on the books. Confused yet?
So anyways. I don't think Countrywide is planning on open up bank branches which is probably not what you meant but many people may have misunderstood.
Jeez I type too much
No from what I've gotten from the in house company memo and moves they've made in the last few years their goal is to become more like a traditional bank. Maybe not have the brick and mortar locations of a BofA etc but than again how many banks are opening up large branch operations besides stuff in a grocery store?
man...I'm lost.
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