"Countrywide Financial Corp. faces "unprecedented disruptions" in debt and mortgage-finance markets that could hurt earnings and the company's financial condition, the Calabasas, Calif., lender said in a regulatory filing." CFC- 25.06 bid getting hit as I type. SPY- down to 145.11
Countrywide Hit by Credit Market Woes By JAMES R. HAGERTY August 9, 2007 7:16 p.m. Countrywide Financial Corp. faces "unprecedented disruptions" in debt and mortgage-finance markets that could hurt earnings and the company's financial condition, the Calabasas, Calif., lender said in a regulatory filing. The company, the largest U.S. home mortgage lender in terms of loan volume, said reduced demand from investors is prompting it to retain more of its loans rather than selling them. The company also has been shoring up its finances. "While we believe we have adequate funding liquidity," it said in a quarterly filing with the Securities and Exchange Commission, "the situation is rapidly evolving and the impact on the company is unknown." Payments were at least 30 days late on about 20% of "nonprime" mortgages serviced by Countrywide as of June 30, up from 14% a year earlier. Nonprime includes loans to people with weak credit records and high debt in relation to their income, as well as to people who don't document their income or assets. On prime home equity loans, the delinquency rate was 3.7%, up from 1.5% a year before. For all loans, the rate was 5%, up from 3.9%. In a sign of the growing difficulty in selling loans, Countrywide said that it transferred $1 billion of nonprime mortgages from its "held for sale" category to "held for investment" in the first half. Countrywide marked the value of those loans down to $800 million. It also decided to retain as investments, rather than sell, $700 million of prime home equity loans, marking them down to $600 million. Countrywide has said many of those home equity loans were second-lien mortgages used by people who put little or no money down in buying a house.
CFC-- 24.65 low print. Down 14% AH. That's exactly why one can't hold any financial related junk overnight these days. Hope knowone was burned. That could easily trap all the longs the last 4 days, All these stocks are probably going to continue to get slammed, liquidity in these stocks will only provide selling opportunities.
Hopefully, Michael scott is returned to the mental hospital where he belongs. Mentally ill patients are sometimes allowed to leave the grounds for a few hours a week provided they have a guardian. Why mentally ill people people are granted internet access is another mystery.
Aug. 10 (Bloomberg) -- Countrywide Financial Corp., the biggest U.S. mortgage lender, said it faces ``unprecedented disruptions'' that may crimp profit, suggesting a credit crunch that started with the U.S. subprime market will spread. http://www.bloomberg.com/apps/news?...uiq0&refer=home Investors fear that US sub-prime and Alt-A crisis will emerge to worldwide "bond crisis".