I have a lucrative deal that has a few road blocks, and it's keeping me on the edge of my seat. First it was close to signing docs but then Wells Fargo got tedious over something regarding the income(loan is 80/20 stated), so now the LO is trying Countrywide.

Well, what are the roadblocks? I personally hate Countrywide so maybe I am biased.

Good luck. Most lenders are not just shying away from 100% loans but running from them, wherter it be an 80/20 or whatever, in particular Stated income. If it doesn't work out, ask the borrower if he could go for a Full Doc via Bank Statements. They will get a better rate. Somebody like a First Franklin under their new Alt A programs might do it if the borrowers score is high enough.

Countrywide has always been able to do an 80/20 reduced doc loan if the applicants have a 680 credit score. Every deal I've ever done with Countrywide has closed on time or before.

My wife is a closing agent and she says she loves to see when buyers are using Countrywide because "I know everything will be easy"

My buyers have 800 Fico.

ok....they should be able to do an 80/20 with reduced doc all day long. As long as their stated income is "within reason" with their profession. Their reduced doc means their primary source of income (employment) is verified while the amount of income, although disclosed, is not verified.

Coolguy... with what is given and the score of 800, it shouldn't be that hard to find an 80/20 but again... there isn't much to work with in your given scenario. What is the "...something about income" that Wells was tedious over?

P.S. Is this the same LO that you posted in another thread that had 2 of your deals fall out of Escrow? Please check your Private Email... I sent you my info.

Thanks,

If your broker is using Countrywide please expect the rates to be at least .25% higher than most banks.

Ya, I agree with Mortgage Master. Every time i've tried countrywide their rates are always a little bit higher then every other bank. I usually try to stay away from countrywide

This just posted at the Bakersfieldblogspot.......Countrywide shuts down their sub-prime arm, Full Spectrum Lending Office, in Bakersfield, California and laid off the entire staff.

Countrywide has added 5800 jobs this year though: http://www.signonsandiego.com/news/business/20070716-1201-countrywide-mortgages-.html

I think they are great. I use a local branch. They never missed a closing. In fact, I had a few transactions where I had title in place and the branch closed the deal within a day. it was ready to fund the next day after the buyers mortgage broker fell through.

I have never done a loan with Countrywide. Their pricing usually sucks.

- What is the purchase price?
- Does your borrowers have reserves?
- What does your borrower do for a living?
- Is your loan officer over stating income? If so, you might wanna consider another lender.

I know a few more lenders other than Countrywide and Wells that will do the first 80%. That's the easy part, but with your fico, I know another lender that would go stated for your 20% up to 150K with your borrowers fico. If your LO can't get it done.

Let me know!

- Darvin

OMG this client(along with another one) were literally the last ones to get 100 percent stated loans. Signing docs later today. I almost had a heart attack.

Yes, the pricing isn't always the absolute best but my branch closes every time. It's not always purely about price. It's about service and ability to close.

I've heard too many horror stories of Countrwide's retail division trying to steal an LOs loan. My old Countrywide AE even hinted that this happens.
All I know is they are the worst to deal with when you order a payoff from them. They will hammer your client to try and get them to stay there. Make sure you order a Countrywide payoff at the last possible second.

Also, https://www.optoutprescreen.com/?rf=t so that when you run their credit, the lender doesn't know. World Savings was the first to start that, and not the damn credit companies will sell the name, phone#, address, and credit score of anyone who does a mortgage inquiry. Check out the link, you can actually sign your client up for them.

Great point Prodigy! I sign my clients up for that when I pull credit. Downside is it takes up to 5 days to take effect. This won't save your clients from getting calls from shops that buy trigger leads, but it's step in the right direction.
I also don't put my clients phone number on the 1003 when I pull credit. This seems to have made a huge difference on the amount of calls they get from other shops.
More than anything, I warn them about what trigger leads are and how the credit companies sell their information to other LOs. I haven't had a client leave me yet.

Same hear, I did a newsletter on it a few months ago. You can see it on my site. It seems underhanded what the credit companies do, it shouldn't be allowed.

One of the brokers I like to deal with works for Countrywide. Although I have only done 1 trancaction with him it went very smoothly.

Financially, it'll be interesting to see what happens to Countrywide.
-Their CEO has decided to liquidate $140 million of his stock options.
-50% of CW's profit came from subprime loans. 25% of the subprime loans with CW are in default
-At its conference call Tuesday, Countrywide lowered its earnings guidance for the rest of the year, saying it expected the housing slowdown to last through 2009. The stock price plunged 10%. Countrywide was, at least on Tuesday, a falling knife
-They count deferred interest from option arms as revenue!

Being Countrywide is the Wallmart of the mortgage industry, they may very well weather the storm. Then again, they may be a victim of their own success and fall like a bird with no wings.

I guess I should just start working for Countrywide at this point, but I used to be in the mortgage business and have kept up with mortgage news.

Some of your statements at the top are incorrect, and anyone can pull out Cw's SEC filings to validate. 50% of profit does not come from subprime loans (which only makes up 8% of CWs total portfolio anyway).

There's a lot more to add here, but Countrywide is not a house of cards. I recommend that company to people all the time.

I should get a damn commission at this point from them!

Also, their chairman, Mozilo is selling alot of shares. That's correct. But if you were 70 years old, wouldn't you start cashing out too? You never know when you're going to kick the bucket at that point.

50% of CW's loans are subprime?

Not a chance.

I stand corrected on my figure on CW's foreclures. Here's what the article stated. Also, CW is the LARGEST lender of loans in the US. Give me a bit to find their origination numbers. I know I've read they are the number one subprime originator since the collapse of New Century.

Countrywide Financial Corp. the largest U.S. mortgage lender, said on Thursday the amount of mortgages in its portfolio that are in foreclosure nearly doubled, amid a difficult U.S. housing market.


Co

Below is an article from yesterday's Wall Street Journal.

25% of loans are not in default like Maine Mortgage says. It's more like 5%.


Countrywide Hit by Credit Market Woes
By JAMES R. HAGERTY
August 9, 2007 8:23 p.m.

Countrywide Financial Corp. and other mortgage companies are facing "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. (Read the SEC filing)

The statement was a supplement to the standard "risk factors" listed in Countrywide's 2006 annual report.

See the SEC filing from Countrywide Financial.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.

Write to James R. Hagerty at bob.hagerty@wsj.com

Bloomberg.com reports that Countrwide may be facing bankruptcy.

http://www.bloomberg.com/apps/news?pid=20601087&refer=&sid=aKRiK9kzL1ZM

Here's the wobble...

http://biz.yahoo.com/ap/070816/countrywide_mortgages.html?.v=8

No more jumbo loans? Stick a fork in them, they're done.

Damn, the banks are pretty smart. They started all these "subprime" arms and when the market collapses, they insulated themselves from the fallout.

Exactly... It's cheaper for them to go out of business than to roll with the punches. Well, I can't fault them because I would probably do the same...

Time will tell. I highly doubt this will happen. Read the company's SEC filings. The company is liable for getting those statements wrong. Plus, the company funds 40 billion a month. How will one 11.5 billion loan help with that? If the company was on its last legs it would've gone down already.

Well, the CEO has been dumping his stock shares for a year. Read this....

http://finance.yahoo.com/q/it?s=CFC

He certainly doesn't believe they will survive this. Maybe he just wants to prop them up long enough to sell every share he owns.

If Countrywide thinks they can compete with portfolio lenders like B of A and Wells Fargo, they're nuts. They will get their [censored] kicked up and down the street on conforming loans. They depended on the sweet profit margins of jumbo loans. No jumbo, no Countrywide.

I'll tell you who is going to be the BIG winner when this shakes out. Bank of America is going to become a HUGE player in US mortgages during the recovery. As a matter of fact, I think their stock is going to go through the roof. They didn't get exposed to sub prime and wrote VERY tight mortgages. They won't suffer much foreclosures and I think that investors will be FLOCKING to them to buy anything B of A wants to sell.