Mismanagement at Countrywide again!

[hakrjak]

Hey Guys -

As some of you know, I used to be a big fan of Countrywide -- having used them for several of my loans in the past due to good customer service by my local agent and the ability to get me good rates with decent closing costs.

Well, a lot has changed since then. Recently I was purchasing a house to flip and I shopped all over to get financing for it because of the credit crunch. Countrywide was one of the banks that I contacted which quickly denied me financing.

I ended up going with a small local mortgage broker who was able to secure me financing at a smaller lender.

1 Month after closing the deal I got a note in the mail that my loan was being sold, and who do you think bought it? I'll give you 1 guess:

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Countrywide!!!!

ROFL.... If these guys would have just worked with me up front they could have made so much more money, since they ended up with my loan anyway. Now they are going to LOSE money because they bought the loan at a discount, and I plan to have it flipped and paid off in a few months.

And that my friends is one of the reasons why Countrywide is going down like the Titanic...

- Hakrjak

 

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[NoMoneyDown]

I'll never understand large corporations (or the even the government) for doing things that baffle common sense when it comes to things like this.

My wife and I are in the process of buying a new personal home. To make a long story short, we offered the Seller (a model home financing company) $xyz for the home and they rejected. A month later they dropped the price to $10k BELOW our $xyz offer. We submitted new offer and got it. So, they not only lost $10k from not taking our original offer, but also lost a month in holding costs, too.

 

[reipro]

How is County wide loosing money buying your loan at a discount? They will be thrilled to get paid off. This will increase there APR!

 

[hakrjak]

Word -

This is a classic case of the right hand not knowing what the left is doing. Countrywide is so big that apparently their mortgage buying division has no communication with their lending division. Their lending group has been told to cut the amount of loans they write and to be extra careful, but their buying division apparently still has free will to buy up loans that their lending group won't even lend on. haha

- Hakrjak

 

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[Russ H]

Guys-

The reason they are buying existing loans but not making new loans is that they have laid off pretty much their entire loan underwriting department. They started doing this more than a year ago:

Countrywide lays off loan originators - UPI.com

Once someone else does the legwork and is willing to stick their neck out to fund the thing, Countrywide has a different division (less people, more computers, now run by Bank of America) that will buy up loans that fit their much-narrower criteria.

-Russ H.

 

[hakrjak]

That's crazy man.... Yeh I've been dealing with one of those situations with Countrywide for over a year now... They had a house go to short sale in an area I was interested in.... They wanted $90k, it was worth about $75k... I made my offer and stated my case and they denied me, only to let the house go into foreclosure and sit vacant for about 12 months now.... It's become an REO at this point and they have it listed with an asking price of $80k... Where's the logic???

- Hakrjak :fryingpan::fryingpan:

 

[sthompson01]

So as a novice, what can I learn from this thread. Know the value?

 

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