Wednesday, January 30, 2008

CountryWide CEO Mozilo's Lie

Courtesy: NYPost


  1. David,

    $394 loss on $7 billion of un-sellable Jumbo loans! Countrywide like every other bank has to find a way to reduce risk on Jumbo loans.

    Oh, I presume everyone already read about how Fannie and Freddie's bond buyers do not want to buy loans above $417k. That's putting a stopper in raising the conforming limit to ever $730k.

    But $730k won't even save some neighborhoods...

    How many of the remaining jumbo loans will turn south in 2008? How much 'neg-Am' income that Countrywide has booked will disapear as loans reset (and default) or will the govenrment prevent the reset and thus erase further value off Countrywide's already weak books?

    Those unrealized gains on so many Jumbo mortgages are the scary story of 2008.

    Got popcorn?

  2. The increase in jobless claims was more than triple what economists had been expecting although part of the increase was blamed on technical difficulties in adjusting the figures around the Martin Luther King Jr. holiday.

    But private economists said they believed the figure was accurately pointing to a weakening in the job market that reflects the significant slowdown in the overall economy. Ian Shepherdson, chief U.S. analyst at High Frequency Economics, said he believed the underlying level of jobless claims currently is around 350,000, an indication of a deteriorating labor market.


    I presume everyone already read how countrywide is cutting HELOC credit lines? The 4th quarter looks to have been sustained by borrowing against homes. That has gone on longer that I thought it could; it won't continue through 2008.

    Got popcorn?