Housing crisis averted? Countrywide Financial refinancing up $16,000,000,000 in subprime mortgages
Obviously the leadership at Countrywide Financial Corporation are readers of Independent Sources which means they are some smart cookies.
The evidence?
Back on August 23rd the following appeared on Independent Sources:
but I think there is a way to salvage things. The current foreclosure boom is largely based on subprime mortgages with adjustable rates that have now risen in cost to the point that he borrower cannot afford the payments any longer. It seems to me that if the lenders were to roll rates back to the teaser rate (or slightly higher) and lock it the rate of foreclosures / defaults could be stemmed. Yes, the mortgage companies would take a financial hit but I think it would be lower than if they allow the current rate of defaults to continue unchecked. To prevent such a problem in the future the use of sub-prime loans and ARMs should be scrutinized much more closely.
Perfect solution? No. Workable? I think so.
Today Bloomberg.com reports that Countrywide Financial Corporation, the largest US mortgage lender, is going to refinance up to $16,000,000,000 in subprime mortgage debt in order to help stem the rate od defaults on the loans. In addition the will restructure terms on an additional $6,200,000,000 in loans that are ineligible for refinancing.
Since the true measure of a person’s intelligence is whether or not they agree with you the honchos at Countrywide are hereby declared “Friggin Genuises”.
Business, Finance, Mortgages, Economics
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October 23rd, 2007 at 8:01 am
[...] Wheatworks.com wrote an interesting post today onHere’s a quick excerptThe current foreclosure boom is largely based on subprime mortgages with adjustable rates that have now risen in cost to the point that he borrower cannot afford the payments any longer. It seems to me that if the lenders were to roll … [...]
October 23rd, 2007 at 9:21 am
[...] Michel wrote an interesting post today onHere’s a quick excerptToday Bloomberg.com reports that Countrywide Financial Corporation, the largest US mortgage lender, is going to refinance up to $16000000000 in subprime mortgage debt in order to help stem the rate od defaults on the loans. … [...]
October 23rd, 2007 at 9:49 am
The San Diego housing market has had a real problem with foreclosures and excess housing inventory. Based on what is happening this week, it looks like Mother Nature is going to take several hundred homes off of the market and require insurance companies to share some of the burden.
Even Malibu which has had a few houses languishing in this current market is seeing its inventory reduced a bit. Judging by the wind outside a few more may come off the market by tonight.
October 23rd, 2007 at 5:48 pm
[...] Original post here [...]
October 24th, 2007 at 10:23 am
[...] Malloy wrote an interesting post today onHere’s a quick excerptYes, the mortgage companies would take a financial hit but I think it would be lower than if they allow the current rate of defaults to continue unchecked. To prevent such a problem in the future the use of sub-prime loans and ARMs … [...]
October 24th, 2007 at 11:23 pm
[...] the rest of this great post here [...]
October 26th, 2007 at 11:35 pm
[...] admin wrote an interesting post today onHere’s a quick excerptThe current foreclosure boom is largely based on subprime mortgages with adjustable rates that have now risen in cost to the point that he borrower cannot afford the payments any longer. It seems to me that if the lenders were to roll … [...]
October 27th, 2007 at 3:47 am
[...] admin wrote an interesting post today onHere’s a quick excerptThe current foreclosure boom is largely based on subprime mortgages with adjustable rates that have now risen in cost to the point that he borrower cannot afford the payments any longer. It seems to me that if the lenders were to roll … [...]
October 27th, 2007 at 7:23 am
[...] leftofdayton wrote an interesting post today onHere’s a quick excerptThe current foreclosure boom is largely based on subprime mortgages with adjustable rates that have now risen in cost to the point that he borrower cannot afford the payments any longer. It seems to me that if the lenders were to roll … [...]
October 27th, 2007 at 7:18 pm
[...] Bill Callahan wrote an interesting post today onHere’s a quick excerptIn addition the will restructure terms on an additional $6200000000 in loans that are ineligible for refinancing. Since the true measure of a person’s intelligence is whether or not they agree with you the honchos at Countrywide are … [...]
March 13th, 2008 at 5:04 am
The foreclosure laws in each state will vary in the degree of their strictness; some states are extremely specific when it comes to the acceptable procedures for foreclosing on and disposing of mortgages.
April 4th, 2008 at 7:09 pm
[...] and the…http://www.huffingtonpost.com/jonathan-tasini/sen-clinton-you-want-who_b_93262.htmlIndependent Sources ? Blog Archive ? Housing crisis averted …Oct 23, 2007 … housing crisis averted? Countrywide Financial refinancing up … ???That Hissing [...]