January 29, 2008

HOLY CRAP! Countrywide Toxic Mortgage reports 33% of all its subprimes loans are now delinquent. Nice work Angelo. Got out of those shares in time.

Angelo Mozilo should be arrested today for mortgage fraud, insider trading, Sarbanes-Oxley violations and, well, for just being the most corrupt and sleazy CEO in the world today.

He knew the loans were bad. He knew making "liar's loans" was illegal. He knew the CDO buyers would come back after his orange ass and sue him. He knew Countrywide would have to eat the loans in the end. He knew he had to dump his shares as fast as he could, since they'd be worth nothing. He knew. And Angelo, got some bad news for ya.

We knew too.


And no way in hell BofA completes this transaction as announced. Unless something really, really, really weird is going on behind the scenes.

Countrywide: 1 in 3 subprime mortgages delinquent

Countrywide Financial Corp, the largest U.S. mortgage lender, on Tuesday said more than one in three subprime mortgages were delinquent at year-end in the $1.48 billion portfolio of home loans it services.

Countrywide said borrowers were delinquent on 33.64 percent of subprime loans it serviced as of December 31, up from 29.08 percent in September. It also said borrowers were at least 90 days late on payments on 17.25 percent of subprime mortgages.


Paul E. Math said...

Wow, a full 3rd of their subprime mortgages are delinquent. You have to screw up pretty bad on your qualifying to get a stat like that.

Seems to me that perhaps the BofA acquisition was never more than a head-fake to calm the markets and make them think the largest non-gse mortgage company in america is not completely worthless. Some people are being fooled. But some people are not.

Anonymous said...

where can I get one of those wrist bracelets?

Anonymous said...

And growing/rising.

Add to it one more walk away:

BOA from the current merger deal, if not completely!!!

Anonymous said...

B of A says the deal is "on track". Problem is they haven't worked out who will pay for the billions of dollars in lawsuits.

The question is whether B of A can talk the fed into taking on all the lawsuits.

Andrew Hac said...

CFC = Country Fried Chicken

Man, Dude. Americano is a strange place of all the places in the Universe. Darn, I did not Fast Food Joint also sells loans and refinancing and sh*ts like that. But hey, this is Americano, the land of the turkey, the beer belly, the buck teeth, the hummer, and the snapper turtle, so what do you expect any way ???

Darn, what a hock ! CFC - Country Fried Chicken selling home loan and refinancing !!!

Tangelo Mozilo said...

I wonder how many of their prime and alt-A loans are delinquent. Probably quite a few.

33% is, even to me, a rather astounding figure at this early stage of the crash. I bet it'll get to over 50% at some point. Other subprime lenders must be experiencing similar problems.

BOA insider said...

BOA is going to walk away, we are working on how to spin it - as you know the markets would go nuts.

You did'nt hear it from me...ok..

X-er said...

Yeah, there is no way BOA goes through with this deal. Once they see what else is hidden from the public they will run away.

They aren't that stupid. It stopped the decline of CFC for a while but CFC is toast.

LauraVella said...

wait till the prime mortgages start defaulting...

Mr. Flibble said...

All you had to do was ask...


Title: 14 firms targeted in subprime loan probe

bank dick said...

A few months ago, the so-called pessimists on talking head TV were predicting a 25% default rate.

LOL - I guess that makes them optimists now!

BoA is putting on a brave face and saying the deal to acquire CFC is still "on". The only question I have is how much more taxpayer treasure will Paulson and Bernanke have to guarantee to Ken Lewis to make that happen?

bank fail said...


first bank to fail in the US....since the housing mess

Anonymous said...

The SEC doesn't arrest people dingbat. They prosecute the securities violations. It's up to the DOJ, get on them.

Flipper blood in the streets said...

All the housing gamblers are in a panic. They never expected to have to make any payments, besides covering the teaser rate until they could quickly flip it for a big profit.

Ed said...

honestly I was shocked to hear that. I would have guessed 50% easy.

happy homeowner in the stix said...

Only 33%? ;)

Just remember to check if your landlord's mortgage is with Countrywide if you are renting. It could bite you in the ass later if you don't.

Anonymous said...

Cramer said it would be 100%.

i think 50% is "in the bag"

Anonymous said...

Andrew Hac,
Just for your information.

From Wikipedia, the free encyclopedia

Americano may refer to

* Americano (coffee), a style of coffee prepared by adding hot water to espresso
* Americano Creek, a river in Sonoma County, California
* Americano (film), a 2005 comedy/romance film.
* Americano (cocktail), a cocktail composed of Campari, sweet vermouth, and club soda.
* Americano Futebol Clube, a Brazilian football (soccer) club from Campos dos Goytacazes, Rio de Janeiro.

Anonymous said...

News flash: Mozilo appointed ambassador to the Netherlands. Oh wait, that was the other guy. Never mind.

Anonymous said...

Seriously though, we are talking on 400 million dollars, that is a drop in the bucket of over 100 billion dollars of writeoffs. Put it in perspecitve. B of A will still probably walk, but this is chump change.

Anonymous said...

The loss threw cold water on Countrywide chief operating officer Steve Sambol's confident assurances to investors in October that, "We view the third quarter of 2007 as an earnings trough, and anticipate that the company will be profitable in the fourth quarter and in 2008."


Out at the peak said...

first bank to fail in the US....since the housing mess

I don't think that is the first. There is at least Netbank that already failed. I'm sure there are other small ones throughout the US that have failed. There are over 220 lending institutions that are documented that have failed on http://ml-implode.com/

I would think a number of small banks have already failed.

Anonymous said...

Oh boy, but the sharks are trying hard to keep the prices artificially high:

Miami developer bets on condos' future

Condo builder Jorge Perez said South Florida real estate is undervalued and he's setting up a $1 billion fund to start buying properties.


Anonymous said...

Ahhhh, the conservative Republican way:

A Hillsboro Beach stockbroker made a fortune peddling risky, complex mortgage-backed securities to mom and pop investors -- including Florida's poet laureate -- who ended up losing millions, regulators say.

The Securities and Exchange Commission's civil complaint asserts that Jamie Solow, 46, ran a fraudulent trading scheme so devastating it also put two brokerage firms out of business.

This month, several giant investment banks disclosed billions in losses due to the nationwide meltdown in subprime mortgage securities and other risky debt. But Solow's trial, which began last week, is putting the spotlight on another class that has suffered large mortgage-related losses: the individual investors who bought those securities. Solow is expected to testify in his own defense Tuesday in federal court in West Palm Beach.

''I trusted him,'' testified Tony Stevens, 81, a semiretired trumpet player and singer from Sunrise who gave Solow $217,000 in life savings to manage. ``I lost everything.''

Florida poet laureate Edmund Skellings is also on the government's witness list. Skellings, who recently moved from Davie to Melbourne, lost about $300,000 that he invested with Solow, according to testimony on Monday. Skellings declined comment.

Solow, who lives in a $7 million oceanfront home on the ritzy stretch of A1A known as Millionaires' Row, got into trouble selling complex securities called inverse floating collateralized mortgage obligations (CMOs).


Andrew Hack said...

tried to add americano to wikipedia but joe six pack does not want to know the truth and deleted it.

the americano is toast but don't know it as long as hav SUV and beer bellys and stucco boxes.

Ed said...

Devil's Advocate here...

News like this may be celebrated by us (renter types). But it might backfire in the long run.

This will be inevery MSM newscast. And it will put yet more pressure on politicians do 'do something'. Well we all know what happens when they do. Bailout city. And with the justification that it is required to save millions of homeowners and thousands of jobs.

We all wanted large scale foreclosures. Well we got it. Except we will probably get a lot more than we bargained for.

Anonymous said...

Coast Financial of Florida already failed for all intents and purposes. Fremont General got a C&D from the FDIC

Shakster said...

CFC in a business cycle enviroment is dead.People say that the Fed will inflate away the debt,and They were right.A new bubble cometh.

Anonymous said...

I wonder how BofA shareholders feel about that little stat?

Anonymous said...

Andrew Hac you are full of shit. You always are gleeful and happy that Americans are losing wealth. Well you should look at the state of your own people. Who is more worse off? We Americans or your Chinese people? Enough said.

Veronica Lodge said...

RE: Bank of America's Countrywide problem...

Now Bank of America faces a dilemma as the value of its Countrywide investment continues to drop.

What should Bank of America do?

1. Buy Countrywide.

2. Invest more money in Countrywide.

3. Wait until Countrywide implodes and sweep up the pieces.

It looks like Bank of America is pursuing option 3.


Princess Mononoke said...

I'm back... boy did I miss HP!

Anyhoo, I think CFC is hiding behind this so-called BofA acquisition for protection.

I don't know if you noticed they did NOT have to report their losses to the media because of this deal on the table. But I heard it was massive. Something to do with their depositer's.

Didn't CFC say to all of us for months that they had more than enough liquidity yadda yadda!

I still don't think BofA is going through with this deal. There are way too many lawsuits and other inherent undesirable liabilities.

Anonymous said...

BOA is going to walk away, we are working on how to spin it - as you know the markets would go nuts.

You did'nt hear it from me...ok..


BOA Insider: Our lips are sealed.

Do you ever think Peter Schiff lurks here on occasion?