Loan Modification Approved – Courtesy of Angelo Mozilo and Countrywide

Countrywide loan modification.

People think that I enjoy reporting doom and gloom. Some people out there in the bogsphere think that I get my thrills by bashing Angelo Mozilo and Countrywide. One person has went so far to say this about my blog, “He also pointed to me to what may be the most anti-Countrywide blog out there.”  Thanks Jane Wells. (CNBC)

I am here for one thing. To report the truth on the mortgage industry and to report what lenders and servicers are doing in regards to their loss mitigation efforts.

If lenders and servicers are truly taking care of struggling homeowners, then I will give them credit where credit is due. If they are severely lacking and BS’ing the media and public, then I will blast them with a counter attack because I want the American people to know the truth. Like I have done many times in the past with Countrywide.

I am for the school of, “It’s not what you say, it’s what you do.” Countrywide finally looks like they are starting to put their loan modifications where their mouths are.

Click here to view an actual loan modification from the office of Angelo Mozilo.

Attention Homeowners! Get live help from the “true experts” in our stop foreclosure and loan modification forum.


Posted in Loan Modification News | 30 Comments

30 Responses to “Loan Modification Approved – Courtesy of Angelo Mozilo and Countrywide”

  1. Jose says:

    I am having a hard time with ASC. Customer rate went from 5.75 to 11.2. Trying to help. Spoke to Mr. Henry a negotiator. Best he can do is 8.5. Said this is better than nothing. I told him customer will just probably loose the house. Incredible. Customer has just enough money to feed his family, they dont care. Any suggestions as to who to speak at ASC. Wopuld really like to help our customer. Cant refinance him, so I thought I help any way that I can, but help from this company.

  2. slidewatcher says:

    Nonsense! Countrywide’s (read Bank of America’s) only hope to avoid triggering repurchase obligations on securitized portfolios, or to reduce the amount of non-securitizable loans they will be forced to keep on the balance sheet (and eventually write down) is to modify as many loans as possible, as fast as possible, before the collateral coverage goes away. The reality is that each drop in median home prices shrinks the number of future defaults they can prevent and they are bailing the Titanic with a thimble. With GSE’s looking for 75% coverage in declining markets (and no takers for Jumbos) this spate of generosity will run out of eligible victims very quickly. The sudden altruism is acutally a race to dodge the hangman’s noose – i.e. Bank of America having to satisfy Countrywide’s repurchase obligations.

  3. Al says:

    “You see, they don\’e2\’80\’99t care if their home is upside down and they may (owe) more than it\’e2\’80\’99s worth. All they care about is the long term, the security, the memories and the warmth of their homes. That\’e2\’80\’99s what this is about. It\’e2\’80\’99s not all about making a buck or a bad investment.”

    Moe, when did you start working for the NAR?

  4. I am pleased to see that CWD is finally seeing the light. I have a personal customer that I have helped several time and it is my pain and pleasure to have helped him through the acres of red tape at CWD.

    This customer has a condo in the downtown area and when his ARM came time to refinance, which I do as a courtesy for repeat customers, it came to light that the home owner’s association was being sued and I could not get his loan approved.

    Even with a home that was not upside down because he was conservative last time he was stuck with accepting the adjustments. He went from 7.5% up to a rate of what would have been 13% next month.

    Together we worked through IVR hell at CWD and finally got the right peice of paper into the right hand and, give a big cheer, they fixed his loan back at the original rate for another five years.

    It’s about time they figured out that it is better to get payments than to become a real estate sales company in this economy.

    Hopefully those who are on the verge of trouble will take these examples that they should remember:

    1. Until you are late, only you know it.
    2. Call your creditors when you think you are going to be in trouble and work out a plan, not after you are in trouble.
    3. Set realisitc goals for the outcome.
    4. Plan for the worst and shoot for the best.
    5. Undrstand their view of the world and expect to deal with some people who simply do not care.
    6. Keep working up the food chain until you get to someone who has the authority to help.
    7. DO NOT GIVE UP!

  5. I am pleased to see that CWD is finally seeing the light. I have a personal customer that I have helped several time and it is my pain and pleasure to have helped him through the acres of red tape at CWD.

    This customer has a condo in the downtown area and when his ARM came time to refinance, which I do as a courtesy for repeat customers, it came to light that the home owner’s association was being sued and I could not get his loan approved.

    Even with a home that was not upside down because he was conservative last time he was stuck with accepting the adjustments. He went from 7.5% up to a rate of what would have been 13% next month.

    Together we worked through IVR hell at CWD and finally got the right piece of paper into the right hand and, give a big cheer, they fixed his loan back at the original rate for another five years.

    It’s about time they figured out that it is better to get payments than to become a real estate sales company in this economy.

    Hopefully those who are on the verge of trouble will take these examples that they should remember:

    1. Until you are late, only you know it.
    2. Call your creditors when you think you are going to be in trouble and work out a plan, not after you are in trouble.
    3. Set realisitc goals for the outcome.
    4. Plan for the worst and shoot for the best.
    5. Undrstand their view of the world and expect to deal with some people who simply do not care.
    6. Keep working up the food chain until you get to someone who has the authority to help.
    7. DO NOT GIVE UP!

  6. JacMac says:

    “The sudden altruism is acutally a race to dodge the hangman\’e2\’80\’99s noose – i.e. Bank of America having to satisfy Countrywide\’e2\’80\’99s repurchase obligations.”

    I think this is absolutely correct. I recently was approved for modification and it seems that is (or soon is to be) a turn in the way Countrywide treats it’s customers — perhaps it’s due to the difference between COuntrywide’s agressive sale of subprime mortgages to people, regardless of their appropriateness to individual situations and Bank of Americas safe, friendly reputation as a “people’s” bank.

    THe fact is my modification which began in late November and is over in late January was a very positive experience. The Loan Negotiator was respectful, on top of things and was put through very little (but some) runaround.

    However, I was very aggressive.

    1) I documented every phone call with a letter, both faxed and sent via snail mail.

    2) I went in personally to the Countrywide center near my home and spoke to the manager of the office and she was able to put me in touch with what I think was a very important person within the Hope Department.

    Incidently, I went in to see her with the good news, brough her a card and chocolates and we were both teary eyed. There ARE good people in this industry!!!

    3) I called once every two days to get an update on my file. I documents every conversation, once again, even if nothing new was said.

    4) I emailed a number of people at CW this month that my loan became due again, stating that time was a running and time is money.

    5) I sent a RESPA letter requesting a copy of my loan docs, describing the fraud that the LO’s committed in submitting my file, stating that I had an ongoing complaint against them with the NYS Banking Department and that their were a number of RESPA violations in my loan docs which possibly made the loan rescindable.

    I’m not sure if all or any of these steps help expedite my loan mod. process but I think it didn’t hurt any.

  7. Brian says:

    Yea, Countrywide and the other banks should just give everyone a 3% 30 year fixed rate. Whoohoo we are all happy then.

    What about the bastard mortgage originator who stuffed these people into the loans at a 3% rebate and a 1% origination fee. What about the ultra greedy buyer/borrower who borrowed more home and went stated income even though they get a paycheck and W2. Oh, thats right they have a side business selling crap on ebay that makes them an extra 8 grand a month.

    It is a shame that these greedy borrowers are getting any help at all.

  8. Fred says:

    Hey Brian,

    Give it a rest.. do you really think that all the people you are slagging are the people who are losing their homes? You are a simple minded individual if you think that is the case. Have some empathy for your fellow man.. until someone is proven guilty, stop bashing, it’s better karma my friend..

  9. JacMac says:

    3% fixed rate on a 30 year mortgage = incoming money

    no modification = possible default and foreclosure

    or

    L O S S

    do the math, Brian.

  10. Brad says:

    The only reason why Countrywide has agreed to give these loan modifications is the brokered agreement with Paulson and the US government. It’s not because they grew a heart or conscience or genuinely care about individuals losing their home. Sure, I believe some employees care. But, for the company, it’s all about the guidelines of the securitized instrument and the guarantee they made to investors. Now, with this brokered agreement, Countrywide doesn’t have to answer for those requirements set forth in the security instruments and can modify everybody without risk of being sued by investors. (can you say bailout?) Plus, they get to look like they are “doing good” for the consumer and Mozillo genuinely cares about the little man. Hogwash! All they are doing is shoring up their delinquencies so they can get their balance sheet in order without needing another capital infusion or having the FDIC rip their deposit accounts out from under them at the risk of another stock downgrade. Countrywide is not your saving grace. More like the devil in sheep’s clothing. If they really cared about you, they wouldn’t have even offered or sold you that garbage loan to start off with. Rest assured, they be happy to sell you on the next best loan product for you as soon as it’s available.

    Don’t get me wrong, I’m glad everybody is getting their modification, even if you didn’t deserve it. The truth is, modifications will only help some borrowers. Those with poor credit and a bad track record will ultimately miss payments again and be back in the same situation, especially since these are all going the be 5-year ARMs and not fixed-rate mortgages. Also, those folks who bought more house then they could afford with Option Arms won’t be helped much either. These won’t be neg-am loan with interest-only payments. They’ll still be strapped for cash and a high percentage will default again. Sorry I rained on your parade.

  11. JacMac says:

    “Also, those folks who bought more house then they could afford with Option Arms won\’e2\’80\’99t be helped much either. These won\’e2\’80\’99t be neg-am loan with interest-only payments. They\’e2\’80\’99ll still be strapped for cash and a high percentage will default again.”~ Brian

    Brian, necessity is the mother of invention. If they are invested, and inclined, they’ll find a way to pay, even if it means selling their a$$ on the street.

  12. Chris says:

    JacMac,

    Hey stranger. You got em?

  13. JacMac says:

    Well if by “got em” you mean a loan mod — YES :)
    I’m waiting on the papers 5.25% for not 30 years but 40 yrs BUT this is down from an 8.0% ARM neg. aming up the whazoo — but my loan docs have been reviewed and Moe has found a number of RESPA violations so Chris, what would you demand from the CW as a remedy?

  14. Chris says:

    JacMac

    Make sure any errors that have a direct affect to you monetarily, i.e. late payments, insurance discrepancies, illegal received fees are returned. Also, I’m familiar with your closing incident, so I would still look for some punishment from the Title Company and L.O. that put you in this situation. If CW is fixing this with you, then I’m sure they will review the L.O. and make adjustments.

    Your situation is one of absolute deceit. I’m pleased you are being taken care of. Someone should be sending you an apology letter.

    I don’t know if Moe is an attorney. If so, cool. If not, double check the violations with a real estate attorney as an added back up to determine your damages and run hard with it.

    Question. How did CW determine 5.25%? And did they reverse the 12k they hit you with?

  15. JacMac says:

    I haven’t gotten the papers yet, Chris so I can’t answer either questions but I’ll update. Thanks for the support — it’s really appreciated.

  16. JacMac says:

    No, no reversal — they added it in. And I don’t know how they determined the 5.25% rate, other than that’s why my income could afford and I qualified, perhaps — based on past payment behavior. Just guessing. I don’t really know.

    Anyway, they’ve given me until January 31st to send these papers out so . . . I’ve got to work fast.

  17. Al says:

    Here’s some numbers for you JacMac

    On a 40 year mortgage at 5.25%
    (All figures are per $100,000 of mortgage, if you have a $200,000 mortgage you can double the figures I give, triple them for $300,000 etc)

    Payment should be $500
    interest will be $437.50 of the $500 (about 88%) on the first payment
    after 10 years: $60K of payments, 50K of interest and 10K of principal
    after 20 years: $120K of payment, 93K of interest and 27K of principal
    at the end: $240K of payments, 138K of interest and 102K of principal

  18. Al says:

    If you can handle a 30 year mortgage at 5.25%
    (once again per $100,000)

    Payment should be $550
    interest will be $437.50 of the $550 (about 80%) of the first payment
    after 10 years: $66K of payments, 48K of interest and 18K of principal
    after 20 years: $132K of payments, 84K of interest and 48K of principal
    at the end: $198K of payments, 100K of interest and 98K of principal

  19. QUITA says:

    CW sucks! I was approved for a loan remod and two months later was told i was denied! What kind of crap is that? They claimed they called me, but I NEVER had a call or message from them. They never mailed me ANYTHING! I am a first time home owner and was paying my bill on-time! What I was not prepared for was the decrease in pay and the repairs that all of a sudden was needed once the winter came. The roof started leaking, the electric had to be rewired, the heater had to be replaced. Being a first time home buyer, I was not prepared for all of this to start happening. The house showed none of this to me and neither did the inspector. Does this make me a bad person? NO! It makes me a screwed individual! CW sucks big time and before people start talking down about people they need to find out more about their situation. Brad hit it right on the nose about Countrywide!

  20. Theresa says:

    Countrywide has not been of any help to us either. We made arrangements to make payments and now because we have had to file bankruptcy not including them, they do not want to work with us.

  21. Erik says:

    My family of 6 bought our first house in 2004 1 hour away from family, friends, and work. It was a brand new home that we could all be in but a little small, 4 bed rooms. It was new but $100,000.00 plus less than homes near work and where we rented. A little drive daily, save some big dollars, all new homes/community, whats not to think it is a great deal. Everything was great and with things foreclosing in other counties I decided to see what may happen to me. Finding out what my payment is adjusting to I called Countrywide 2 months before the adjustment. They said nothing can be done until I am 90 days late and maybe I should refinance. After speaking to many lenders the value was not there anymore, being I already had a 2nd mortgage no one could consolidate the 2 loans or even refinance the 1st. Called Countrywide to be proactive about my situation and I was mailed a letter to submit some information. I sent it out right away never received a phone call so I called after 10 days of sending in the documents and I was told a negotiator would call me back. Never received a phone call, I called just before the due date for the new rate and was told not to submit a payment. Waited many days for phone calls and made many phone calls to get answers. People answering the phones said to submit updated documents as the olds ones are void, did that right away. Called again found out I have a new negotiator assigned to me and I ask for him to call me, never called back after 4 different phone calls requesting to know what is going on.

    I am now 3 months behind, dont know what is going on, cannot refinance as I am sure credit is trashed now, dont have any equtity, ashamed of my situation to even speak about with neighbors or co-workers, keep spending money on gas to commute, working hard to pay bills as always, and I rather just pack it all up and move to a rental close to work. I would save tons of money monthly but I know it would comback to bite me big time. Alot of stress and tension to keep a home we thought would be part of the American dream with a little sacrificing, no big deal right? At this point it is wrong as I spent thousands of dollars for the house and I also added some stuff to make it better as we planned on living there for a long time at least 10 years. What to do? Does anyone have any ideas? Thank you for any input!-Erik

  22. Screwed and raped by CW says:

    CW is getting very selective in who gets the good money. They tell my neighbor who is the same situation as I that she is good for 5.6% almost a 100 basis point improvement over her current rate. They tell me I am good for nothing. Screw CW

  23. JacMac says:

    Erik, join the forum in the upper left hand corner of this page. YOu’ll get plenty of help there.

  24. Nookie says:

    Look folks………….If Countrywide is unwilling to help, then tell them to kiss your ass, and give them the house! If there is a deficiency balance, file BK and wash it out.

    This process of selective help is financial discrimination at its best! IF COUNTRYWIDE helps 1 person, then they should be obligated to help everyone regardless of type loan. How can you say, OH, Im gonna help johnny with a loan mod. @ 9.5%, but not ruth @ 8.75%??

    Countrywide may as well say only Blacks get the help, while Whitey get nothing. Fuck’um all!

  25. Leon says:

    I’ll tell you what’s bullshit. I just did a refinance with good credit and full documentation and only got a 6.1% interest rate. Why are people under these circumstances getting a better rate than I did? WTF

  26. Justin says:

    I went to sell my house and it appraised for about what I owed but it turned into a short sale. But, because CW took so freaking long to do anything I lost my sellers. I called and harassed them twice a week and told them if they didn’t step on it I would lose the buyers and the house would wind up in foreclosure. They didn’t seem to care and told me there was nothing they could do about it. They would rather the house foreclose then speed up the paperwork (originally told me 30 days then later told me 30 days before anyone would even look at it). This was my first house now I’m going to lose it because I already moved and can’t make rent and mortgage payments. They SUCK

  27. Janusz says:

    Dear Mr. Chairman Angelo Mozilo

    As a long time customer of Countrywide Financial I would like to take this opportunity to express my heartfelt thanks to yours one of your Teams Leaders, Workout Department at 1515 W 14th Street, Tempe Arizona.

    Yours Teams representative, Jacqueline Kemmere and Alma Willis, went out of there way to ensure that I will keep my dream house and they put me in the program that would work best for me and my family. This was especially so important for me since we are experiencing in the U.S. Housing Market inevitable downturn with adjustable rate schedule to reset in 2008 and I will not able to afford my new payments.

    Again, I wanted to let you know that I appreciate the help and support I received in the Modification Program and especially many thanks those two wonderful employees you have. Thank you for your attention.

  28. robow says:

    I am not late yet on any mortgage payments. Should I start trying to get loan modifications now or do I need to wait until I am monthes behind on payments to get started? I am in the middle of a divorce and recently laid off due to an industry strike (actors). I have several mortgages in joint custody with the wife i am divorcing. she recently lost her job as well. We are also in the area directly affected by Katrina. We were both in real estate after the storm. We were living on our equity in the properties to sustain ourselves waiting for the market to change meanwhile going deeper in debt. We both took jobs in other fields after we seperated. I am about out of resources and going to be late in the next cycle of payments unless something gives quickly.
    Thanks, Robow

  29. Trent says:

    Is anyone else as either a borrower or a processor feeling the extreme Countrywide frustration lately?

    I always wanted to say that this site is a great resource for people.

    Thanks.

    T

  30. CW customer says:

    If you are in trouble with your mortgage and are upsidedown don’t send them another penny. It is difficult to fit into the narrow criteria that CW has to qualify for a loan mod. Do not expect it to happen. If you have equity then sell it quick or figure out a way to make the payment.