After years of showing that "Danger" was indeed the middle name of the mortgage industry by making spotty loans to already strapped borrowers, there's a bit of a fallout. To wit, Countrywide Financial Corp.'s financial trouble deepened Thursday, forcing the nation's biggest mortgage lender to tap an $11.5 billion credit line to fund operations. According to the Los Angeles Daily News, company officials issued reassurances that they were dealing with the credit crunch, and that homeowners with Countrywide mortgages would not be affected. Paul J. Miller, an analyst at Friedman, Billings, Ramsey & Co., said in a research report that Countrywide's survival depends on how long the mortgage crisis lasts. Interestingly enough, with all the bad press happening these days, consumers with good to excellent credit and payment histories should be even more in demand as standards tighten and the ability to close mortgages becomes even more difficult for lenders. Is this so? The Pine Cone will be listening to the experts and reporting back soon.
Friday, August 17, 2007
MORE NEWS FROM THE GREAT MORTGAGE DEBACLE OF 2007
After years of showing that "Danger" was indeed the middle name of the mortgage industry by making spotty loans to already strapped borrowers, there's a bit of a fallout. To wit, Countrywide Financial Corp.'s financial trouble deepened Thursday, forcing the nation's biggest mortgage lender to tap an $11.5 billion credit line to fund operations. According to the Los Angeles Daily News, company officials issued reassurances that they were dealing with the credit crunch, and that homeowners with Countrywide mortgages would not be affected. Paul J. Miller, an analyst at Friedman, Billings, Ramsey & Co., said in a research report that Countrywide's survival depends on how long the mortgage crisis lasts. Interestingly enough, with all the bad press happening these days, consumers with good to excellent credit and payment histories should be even more in demand as standards tighten and the ability to close mortgages becomes even more difficult for lenders. Is this so? The Pine Cone will be listening to the experts and reporting back soon.
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