Mortgage Grapevine

Is Countrywide subprime no longer in business?

I´ve heard similar rumors
by casio March 12, 2007 12:00 AM

i heard the same thing too
by i need more cowbell March 12, 2007 12:00 AM

hope not just got off the phone with John (AE) and submitted a loan.
by ftwbroker March 12, 2007 12:00 AM

Looks like they are capping everything at 90% from now on, even full doc.

http://money.cnn.com/2007/03/12/news/companies/bc.countrywide.mortgages2.reut/index.htm?postversion=2007031211

"Countrywide told its brokers Friday to stop offering borrowers the option of taking out a mortgage without a down payment, according to a document obtained by Reuters"

I just looked at the matrix. Max CLTV for any score or doc type subprime is 90%.
by Kyle@CreveCor March 12, 2007 12:00 AM

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 12:00 AM

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 12:00 AM

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 12:00 AM

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 12:00 AM

What center did you work out of?
by WholesaleSolutions March 12, 2007 12:00 AM

Richardson, TX was my processing center.
by MakinDreams March 12, 2007 12:00 AM

Can´t get a subprime rate sheet from their site right now.
by Wee Todd Ed March 12, 2007 12:00 AM

CW´s BC was closed 2 days after they started operation; management foregot to tell anyone.
They are an Alt-A only not BC, they have never been able to close doors or loans.
The are slow like everyone else, so you reduce staff. 70% seems to be the number we are working towards every where.
CW had a lot of people leave when they installed GEO restrooms around the counrty...leo
http://www.toilette-humor.com/bathroom.html
by leoknows March 12, 2007 12:00 AM

I just spoke to an AE who works out of the Anaheim center.

His sales manager and all AE´s on his team were fired. He is putting his resume up on Monster.

He was told by the big SVP that the Op´s cuts are already in the works.

Sad times...
by WholesaleSolutions March 12, 2007 12:00 AM

Leo, hate to tell you this, but CW was one of the top 5 purchasers of B\C paper in the market.
by Al Gore March 12, 2007 12:00 AM

I am reading their rates right now on their website;
they are still doing 95% LTV on both full and stated doc.

I dislike CW B/C but I dislike mindless rumour mongering worse; if CW goes down, this industry is toast. Hell we might be crispy fried alreayd in all honesty.

But hey, this is a great CW Sales tool, since you just made me check all of their rates and guidelines...
by Hungry-for-Dollars March 12, 2007 12:00 AM

I have been as positive as I possibly can. I still think the strong will survive.

I can´t stand CW. But seriously, what percent of subprime paper do you think they buy? Maybe 40%?

If they go away, then subprime goes with them.......


by JJMotgage March 12, 2007 12:00 AM

They are pushing more A and Option ARMS right now.
The company is gonna survive because the don´t do as much B/C and ALT A as they do A.
You have to remember that they have a huge retail franchise that delivers mostly A paper.
This is just going to reduce their profits for several quarters.

Remember, it is the monoline lenders that you must worry about, or those that have significant exposure to subprime and ALT A versus A.
by dw March 12, 2007 12:00 AM

They´re not going away....just making adjustments to products as well as staffing. What did you expect?
by snap-crackle-pop March 12, 2007 12:00 AM

Hey dw-
You are right in all that you said, other then "this is just going to reduce their profits for several quarters".
Dumping the subprime albatross should significantly improve their profits as that is the only segment of their company that is losing money. And maybe the books will look a little better for that annoying little rumor of B of A buying them to come to fruition.
by ajmojo March 13, 2007 12:00 AM

by angi March 17, 2007 12:00 AM

Subprime isn´t going away for CW - it´s simply tightening up. For a company that´s main profit is A paper - they have no reason to get rid of their BC paper. With every MAJOR lender tightening it´s belts on the BC side, why wouldn´t CW follow suit?
by angi March 17, 2007 12:00 AM

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