Countrywide Real Estate & Loans? Heck, you might as well open an escrow company also and hire out of work real estate professionals for $10 an hour to run your new real estate company and sink every other that is left standing when this mess is all cleaned up later in the non so “NEAR” future.
Isn’t that the next logical step Mr. Mozilo? I mean why pay a real estate agent 5-6% when you can control the entire transaction from a-z? What about property management? You’re going to need to have that service because the majority of your real estate inventory will not sell. Now you will be renting homes to the American people and I’m sure you will be calling them at dinner to sell them a mortgage while they send you rent every month.
Countrywide is in the news big time lately and for good reason. Big things are happening in Calabasas, California and Mr. Mozilo seems to be orchestrating some pretty bold moves for the ailing mortgage giant.
“The largest U.S. mortgage lender also said more than 7,000 mortgage consultants will over the next six weeks fan across the country at weekend “open houses” to help Americans who may be shopping for homes.”
So let me get this straight. Countrywide is going to outscore loss mitigation efforts to India and then pay mortgage consultants to go ambulance chasing and pawn loans to the uneducated and ill informed people that are stupid enough to buy a home in this market? They just don’t stop these great public relation campaigns.
It’s as if everything they do now is to impress investors and not consumers.
Then a light clicked in my head. Wait a minute here. What are they really trying to do because everything they do, make no sense, so their has to be some reasoning behind these business moves that I personally feel, are a joke?
Why didn’t Countrywide send 7,000 of your loss mitigation staff to help distressed borrowers? The reason is because they are only interested in generating new business and not taking care of the borrowers it has. They seem to follow the old sales model of churn em and burn em. Just keep the suckers coming. Once we hook em, throw em to the sharks.
How do I know this? Because I have dealt with them many times, I research what they are doing and who they are helping. I network with other professionals and non-profits. What do they all say? That Countrywide’s loss mitigation department is one of the most ridiculously ran in the industry.
More from the article:
“The Calabasas, California-based company is joining homebuilder Hovnanian Enterprises Inc (HOV.N: Quote, Profile, Research) among housing industry participants to step up marketing as foreclosures have risen to record levels while home sales have slumped.
Countrywide is focusing on smaller home loans, which investors consider safer, and has stopped offering many riskier mortgages. It set plans this month to fire up to 12,000 workers by December because it expects loan volume to decline.”
Foreclosures, Mortgage consultants, open houses, more foreclosures, more lay offs, partnering with builders, taking back homes left and right, not working with borrowers?????????????????? Daily their real estate portfolio increases and increases.
“Morgan Stanley analyst Kenneth Posner has said write-downs might result in a $2.4 billion third-quarter loss at Countrywide, more than wiping out the prior year’s profit.
Countrywide nonetheless said it is encouraged by what it called “signs of renewed consumer interest” in home finance.”
Sorry to inform you Mr. Posner, the losses will be much more than that. That renewed interest was just homeowners who have already tried to apply and mistakenly thought a Fed rate cut would help their situation.
Unfortunately, they cannot be helped.
Founder & Homeowner Advocate
LoanSafe.org
LoanWorkout.org
951-271-6283 Phone
800-734-8819 Fax
Moe at LoanSafe.org Email
Well said, Moe. When I see large and successful corporations making what seem to be completely illogical decisions, I figure it’s one of two things: (1) incompetence due to the corporate structure being overly burdensome and too slow to react to an unexpected disaster or (2) some motive that is not obvious at play such as a major shift in business plans to take advantage of what would otherwise be a crisis.
Here, we may have either. Though, the more you think about the implications of the biggest lender foreclosing on many many properties, you see what could be a plan to be the biggest landlord in the United States.
Keep in mind, that when you take out a home loan the first few years of payments are almost all interest anyway, so you are just “renting” from the lender. Thus, for the first few years whether you rent or take a mortgage, you are just a “renter” in the sens that you are not building up any equity. The big difference, of course, being that after a few years you still haven’t gotten any equity in your “home.” However, most people do not live in the same homes for 30 years anymore. We move all the time, so we start a new mortgage every few years.
It will be very interesting to see how this plays out.
- Paul
Hey Paul!
Incompetence can be an understatement in today’s environment. They need to make changes much faster and it’s just not happening. They sure did hire the necessary staff to handle the never ending supply of new loans that where coming in and now the treat there clients terribly.
Mark my words Paul!
COUNTRYWIDE WILL BE THE BIGGEST REAL ESTATE HOLDER IN THE WORLD WHEN THIS IS ALL SAID AND DONE. BIGGER THEN THE GOLDEN ARCHES!
Regards,
Moe
And we’ll all live in rent controlled McMansions. If your prediction comes true, the government will have an easier time regulating rents than mortgages. We’d have no home owners’ insurance policies, no property taxes, and no maintenance costs. Sounds good until we realize that the big landlord would have a monopoly on property and be able to hike the rent as high as possible and leave no room for competitive pricing.
- Paul
McMansions! I LOVE THAT ONE!
It’s already a game of monopoly and the American people are losing big time!
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Hello! Found your blog on yahoo while searching for Financial Insurance And Home Inventory – quite some good info thanks, J.Sanders
I think you are wrong,they are helpful,as an american its really hard to say its true that they have hearts,they listen to our queries…