Just when they probably think it could not get any worse, Countrywide is under investigation by several states. I read where one former employee was suing Countrywide and KB. Apparently Countrywide is under investigation because of its subprime lending practices. How many times have we seen those same companies that did subprime lending come under fire or end up filing bankruptcy themselves.

Look at some of these details that I read about when I was looking at Countrywide. The attorney general's office
Florida started a mortgage fraud hot line last year. They received 150 complaints on Countrywide. That is a lot of complaints and makes me wonder if any of those are duplicates. Seems Attorney generals in
Illinois and
California are conducting similar investigations. I do applaud these agencies for stepping up and taking action. One thing that I encourage the readers and potential home owners is to do your research. Do not let someone tell you how you should think or decide about a particular situation.

Do you guys remember when Countrywide suffered heavily under the weight of the subprime fallout. Then Bank of America comes in to the rescue. Seems as if this is not a good mix though. SRM Global Fund, which owns a 5.2% stake in Countrywide stated the acquisition is a bad deal for shareholders. This makes me want to ask the question if this has been publicized in the media. This information sure does make you think if this is going to go through or not.

Countrywide has even had a quarterly loss of $422 million. I know if that were me, I would definitely have to do something different. That is a very significant loss and will probably continue to incur loss. I thought I read earlier today where the CEO forfeited some of his bonuses in order to give that money to the shareholders. Of course because I want to share it with my readers, I can no longer locate it. He wants to do what is best for the consumer.

Even as Countrywide is under the looking glass in my opinion, I saw a news breaking story that said Countrywide sent a letter to 122,000 customers last week telling them they could no longer borrow against their credit lines because the total debt on the home exceeded the market value of the property. The lender says it is using computer modeling to determine which of its customers would have their cash spigot shut off.”I can just imagine the people feeling they were getting some relief and now they are going to worry and stress all over again. They did not get an opportunity to get some things cleaned up. Now they are back to square one. During the beginning of any year, people seek the opportunity to clean up finances and start fresh. For those people that are affected by this decision, I hope they had the chance to correct some things when it comes to their home.

Stay tuned. I am sure we will be hearing more and more about Countrywide over the next few weeks.

Dr. Taffy

Post from: FHA Mortgage Center Blog

Countrywide is now under the looking glass

Read more ... http://fhamortgagecenter.com/fha-blog/countrywide-is-now-under-the-looking-glass/.