We have done a lot of business with Countrywide in the past few years. The clients that have been serviced by them have been very pleased with the loans and terms they're received. We also have done some personal business with them. And have also been pleased.
We get emails from them all the time letting us know how things are going in their eyes, what rates are doing, etc.
This morning we received an email about everything that's been happening lately. It went as follows:
News about the current state of the mortgage industry can be unsettling for those of us who make our living in this business. This challenging time has brought about greater than usual media coverage of our sector, including coverage about Countrywide.
With all the information that's being distributed, I wanted to take a moment to personally update you on what's going on at Countrywide.
We have supplemented our existing liquidity options by infusing an additional $11.5 billion in to our operation through a syndicate of 40 of the world's largest banks. More than 70 percent of this facility has an existing term of greater than four years.
We announced our strategy to fund a significant portion of loans through Countrywide Bank, which has approximately $100 billion in assets. Today, we fund approximately 70 percent of our loans through Countrywide Bank, and expect that nearly all of our loan volume will be funded through the bank by the end of September.
We expect that approximately 90 percent of the loans we originate will be eligible for funding through Countrywide Bank or the Government Sponsored Entities (Fannie Mae, Freddie Mac).
Just this week, we increased our product options for fully documented Jumbo loans.
I want to let you know that while this industry turmoil may continue for some time, Countrywide is here to assist you in andmeet the home loan needs of your customers.
While the current industry news can be unsettling, know that I am here, backed by Countrywide, to meet your mortgage lending needs. Feel free to contact me directly by phone or email.
I'm not sure how much confidence the public is going to have with Countrywide right now with all of this happening. I think they have lost a lot of respect for this lender. At least that's the feedback I've been hearing.
7 Comments on Straight From the Mouth of Countrywide
Very interesting...it seems like they are trying to recover but their comments seem to be contrary to what a lot of the media is saying. Guess we'll have to wait to see what happens in the coming months.
The consensus is that they are really in some trouble with that kind of announcement. SunTrust is a very well respected bank/lender in the SouthEast and we have had no such announcements to date. Maybe take a good look at us? I have often beat Countrywide on program and rate.
David: You know, it's really funny that you mention Suntrust. The girl we did the most business with at Countrywide just left them a couple months ago and went over to Suntrust. They don't have a big name here, but it's good to hear that they aren't in trouble.
Believe it or not 100% financing or 'no money down' options do exist in the market. They may not be considered sub-prime options but there are various programs that will support a range of credit profiles. The programs are full documentation in general. We may have some high LTV options for the self employed.
The following are some examples of what I can do today.
80/20 Piggyback 100% Purchase. My programs here have undergone little change. We still have all of our 2nd trust programs in place with little change in the interest rates. Yes, you can do 100% 2nd trusts for under 9%! We can support jumbo loan amounts on average or better credit.
80/20 Piggyback 100% Refinance.
I am actively doing 100% rate/term refinances at 'A' paper rates. For borrowers with average to better credit and financial assets. This is a great option for those with ARMs that adjust and may have purchased at high LTV in the last two to three years. The borrower needs to show some strength in their overall application whether it be credit, income or assets.
Single loan 100%, no mortgage insurance
I can do 100% financing in a single loan on the 30 year fixed. This will support below average credit profiles. $417k or under loan amounts.
Community Lending 100% Single Loan with Mortgage Insurance
These are FNMA backed programs that support below average credit and relatively low Mortgage Insurance rates. Income limits do apply and vary by geography. $417k or under loan amounts.
Jim and Maria - Hello! I read your information on Countrywide and I think the information you posted is pretty accurate. While I think Suntrust is the greatest (of course!), I am not one to predict the imminent fall of a competitor, especially one as large as Countrywide. They are number one, and, as such, in this market and time, are going to have some of the biggest problems, but hopefully their issues are not insurmountable. Suntrust steeled for the market downturn a little ahead of the curve, so we are in a good, competitive position and have not really lost market share or products. As always, you guys are on top of things and looking ahead.
Thanks for commenting, Rebecca! I think you nailed it on the head -- Countrywide is the largest lender, so if there is trouble to be had, then they stand a good chance of having the most. Good to hear that Suntrust saw the trouble coming before it hit and was able to prepare themselves. And it seems that you did as well :)
Jim & Maria Hart ~ Charleston, SC Real Estate
With all the information that's being distributed, I wanted to take a moment to personally update you on what's going on at Countrywide. 
;)
;)
Very interesting...it seems like they are trying to recover but their comments seem to be contrary to what a lot of the media is saying. Guess we'll have to wait to see what happens in the coming months.