American homeowners went from being taken advantage of with the advent of the predatory lending subprime market and now there are being eaten alive by the servicers who service these predatory loans.
Think about it? How can you have a predatory loan and not a predatory servicer? It’s like raising a great white shark to be a KILLER and then have someone adopt that shark and try and domesticate it to make it friendly. That logic just doesn’t jive, does it?
Why is servicing these crappy loans so damn profitable? The crappier the loans the bigger the profits. The more homeowners that do not make payments on time, the more fees these sharks can feed off of. Multiply that by hundreds of thousands of crappy loans and you now have a pretty darn profitable shark trolling business.
Hell, its a lot more profitable for Countrywide to service crappy loans then it is to sell them. Maybe that was all part of the grand scheme in what I have coined as “The Great American Homeowner Swindle”.
Some more shark food for thought:
Why would Bank of America infuse the ailing Countrywide with 2 billion dollars? It’s not because they are a great lender. NO! It’s because Countrywide makes huge profits by servicing loans. Especially subprime delinquent loans and B of A wants a slice of that subprime toxic loan pie.
BANK OF AMERICA IS PLANNING TO BE THE KING OF THE SEA!
Rumors have it that a complete take over is in the works. B of A stands to profit enormously from the misery of American homeowners and servicing non performing loans.
I always look to Wall Street and guys like Mad Money’s Jim Cramer to validate my views. If Wall Street is looking at any of these companies right now as a good investment, then I know there must be a sick reason why.
“But most important, in what looks like sheer genius, in less than a month it can buy Countrywide for what looks to be on the cheap in a business that is about to get great: servicing and issuing mortgages,” Cramer said.
So why is the servicing business about to get GRRRRRREAAAAAT? Hell, it’s great now, it’s only going to get fantastic as more of these predatory loans adjust and they can apply their predatory servicing tactics to really cash in on homeowners who are delinquent.
Cramer- “I believe that the sudden rush to own servicing rights companies shows that there are going to be some big gains in that area, and Countrywide owns it.”
True, Countrywide went from being the biggest predatory lender to the biggest predatory servicer.
“Bank of America will end up being the mortgage king in this country. Deposit king; mortgage king; fee king,” Cramer added.
Need I say more?