Ever watch wolves in a feeding frenzy over the carcass of a dead animal? Ameriquest and New Century are peeing in the pool it looks like...
Brutal competition in the shrinking home loan market has caused "irresponsible players" such as Ameriquest Capital Corp. and New Century Financial Corp. to spoil mortgage banking profits, the chairman of No. 1 home lender Countrywide Financial Corp. said Tuesday.
Announcing earnings that disappointed Wall Street, Countrywide founder Angelo R. Mozilo singled out the two Orange County-based competitors, blaming "the Ameriquests and New Centuries of the world" for pricing loans too low in a bid to retain market share as business slows.
I've been doing this for 53 years, and I've never seen that situation sustained," Mozilo, 67, said during a conference call with securities analysts. "Eventually they gag on it." Mozilo added that "cracks in the armor" were beginning to appear, citing Ameriquest's recent decision to lay off 10% of its staff, or 1,500 people, at its Ameriquest Mortgage unit.
On Tuesday, another Ameriquest company, Argent Mortgage Co., said it would shed 640 of its 4,000 employees, with layoffs spread across its California headquarters and regional centers in Illinois and New York.
February 02, 2006
Update from the bowels of hell: CEO Blames Loan Rivals for Eroding Earnings
Subscribe to:
Post Comments (Atom)
2 comments:
I've been doing this for 53 years, and I've never seen that situation sustained," Mozilo, 67, said during a conference call with securities analysts.
So he's been doing "this" since he was 14 years old? That speaks volumes about an industry that is full of liars and scoundrels.
Wow, any guesses on how long it will take for the bloodbath to begin for realtors?
Post a Comment