Countrywide Chief Proclaims Party Over
Despite a recent partial bailout for Countrywide by Bank of America, it would appear from the words of their Chief Executive that the lender is far from being ‘out of the woods’ yet.
One article by Liz Rappaport quotes:
“When you have this level of delinquencies and foreclosures, there is no way it doesn’t have an impact on psyches and wallets,” said Mozilo.
“I don’t see the light here,” he added, noting that the current financial panic is among the worst he’s seen in 55 years.
With such dire reports from the lender’s leadership, Wall Street seems to be sharing the concern, with the stock’s recent rebound falling back down.
While the lender is certainly large enough to weather most storms, a wave of desperation seems to have hit every major lender in the industry as investors continue to shy away from purchasing sub prime loans at any price. It would appear that the only ones at this time willing to put any money into such loans are the home owners themselves as they struggle to pay off mortgage loans.
No matter what the outcome, it appears certain that getting a home loan in the future is going to be quite a bit more difficult.
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