Tricia, you are correct in your suspicions...here is a story on the flip sid eof ther supposed Countrywide "benevolence"...

Here is a link that might be useful: 2 months behind on the mortgage

Here's another take on it.

Here is a link that might be useful: Who'll rescue homeowners in the housing mess?

Why do I think Countrywide's not being as altruistic & benevolent as this makes them sound?
I don't read this article to show Countrywide as being altruistic & benevolent, just stating a possible plan of Countrywide's.
Does any else get urgent calls from them, every fews days I get a recording from them wanting to give me a new loan. I recently had three Countrywide loan, I paid them all off, nothing to due with their problems, but they want me back.

"None of our subprime borrowers that have demonstrated the ability to make payments should lose their home to foreclosure solely as a result of a rate reset,'' David Sambol, the company's president and chief operating officer, said in the statement."

This statement & a half-dozen other contained in the article prompted my post. Countrywide didn't give a hoot about the foreclosure potential of these borrowers a year ago.

/t

Of course they aren't being...."altruistic and benevolent" (they aren't a charity), they are making a business decision. Plain and simple. Their last business decision (the whole sub-prime thing) backfired on them bad, and they need to do something or go under.

If they don't bail themselves out, then they have nothing except a bunch of overpriced houses, that no one wants. They have to maintain them, pay taxes on them, and pay the fines if they do not. Then they have to pay realtor costs, closing costs, etc... Lose, lose, lose, lose and lose.

If they can't refinance, homeowners can't buy another house, lose their credit rating, and are forced into and through foreclosure, and still may have a balance on the loan..... Lose, lose, lose, lose, and lose.

So the way things are now, everyone loses.

Countrywide is only doing what makes sense. And to that, all I can say is.... It's about time. Guess they had to make sure no one was going to rescue them from their own folly first.... of course that would be the homeowners AND the mortgage companies.

Why is this a bad thing? Granted Countrywide may have to wait a little longer for their money back, and probably won't make as much in interest.... and the homeowner may have to pay a little more than they thought or have a 35-50 year loan instead of a 30 year one. But as far as I can see, it's good for the companies, because they don't have to be bankrupt, and good for the homeowner, because they don't have to be foreclosed on. And BEST of ALL...... I do not have to spend more money (taxes) bailing out the stupidity of both groups. They bail themselves out. I'm missing the downside.

Mil

The downside is that regrdless of what Countrywide may be saying to the contrary, the actual homeowners are not getting any assitance from them at all in terms of restructuring the loans...

The downside is that regrdless of what Countrywide may be saying to the contrary, the actual homeowners are not getting any assitance from them at all in terms of restructuring the loans...
Do you mean now or in the future?

cmarlin20: Do you mean now or in the future?

Now. As far as the future is concerned, most home owners affected by this debacle won't have a future in their current homes...as they either need to restructure now...or foreclose...so I'm not sure of your point....

I have a question..may be a stupid one....how can one restructure a subprime loan when the very same loan was packaged into MBS and sold off to investors?

try99: "I have a question..may be a stupid one....how can one restructure a subprime loan when the very same loan was packaged into MBS and sold off to investors? "

That is a good question...I will be curious as to the explantion...however, something tells me that in the world of finance, anything is possible.

If there is a will..they will find a way...even if they have to invent one.

A piece in Wall Street Journal on Countrywide's prime loan portfolio..Scary to know that even the prime(option ARMs)loans are going bad at a rapid pace. Whatever happened to "it is just an issue with subprime market"

In 2009-2011, monthly payments on $229 billion of option ARMs will readjust (so borrowers may have to pay more)...Read more...Countrywide's New Scare

Countrywide may find itself in a real world of hurt if the bonds they issued turn out to be bad.
I can already foresee lawsuits about not clearly identifying the risks of the bonds.
The bond holders are going to look for underwriting standards being met and adherence to generally accepted standards (even for high risk).
Countrywide will disappear as a working company if they become involved in lawsuits over underwriting practices and not accurately portraying the risks of the securities they issued to the investors (who are already nervous).

I completely agree that CWC is neither benevolent nor altruistic.

However it is deeply concerned about it own bottom line, and having a gigantic inventory of foreclosed houses isn't helping.

It also has to be upset about all the terrible PR it's gotten lately. One purpose of this new program is, no doubt, to try to turn that around.

As for the bonds, I don't think the bondholders, which include many huge institutions such as pensions and money market funds, would have been so eager to purchase them if the bond raters had given them a junk status rating, a rating we now know they deserved.

I've read that the three bond rating companies (Standard&Poor, Moody's and Finch's), may have conflict of interest issues because, when rating these bundled mortgage bonds, they were simultaneously taking fees from the originators, such as CWC.

The deeper we get into this debacle, the more we find out that the financial structure that allowed it to happen is rotten to the core.

At least that's the conclusion I'm beginning to reach.

Tell me I'm wrong.

brickeyee: Countrywide will disappear as a working company if they become involved in lawsuits over underwriting practices and not accurately portraying the risks of the securities they issued to the investors (who are already nervous).

IMO, your assessment is most likely correct.

NowÂ...how ironic is it that CW's downfall will be in not portraying the risks of the securities they issue to investors.....but in not portraying the risks to the borrowers, the borrowers are the ones to suffer the downfall?

It just underscores my point that in the world of finance, it is only the the big money that talksÂand all else suffers the fallout.

* Posted by brickeyee (My Page) on
Wed, Oct 24, 07 at 18:37

Countrywide may find itself in a real world of hurt if the bonds they issued turn out to be bad.
I can already foresee lawsuits about not clearly identifying the risks of the bonds.
The bond holders are going to look for underwriting standards being met and adherence to generally accepted standards (even for high risk).
Countrywide will disappear as a working company if they become involved in lawsuits over underwriting practices and not accurately portraying the risks of the securities they issued to the investors (who are already nervous).

You were spot on about law suites, just read this on yahoo - Entwistle & Cappucci LLP and Susman Godfrey LLP Announce Class Action Lawsuit Against Countrywide Financial Corporation