Skip navigation
MOST POPULAR RELATED TAGS
  • TOPICS
  • SECTORS
  • COMPANIES
 

  Current Housing Indicators
CURRENTPREVIOUS
Existing Home Sales4.49m4.74m
New Home Sales309,000344,000
Housing Starts583,000477,000
Building Permits547,000531,000
HMI9UNCH9
Existing Home Prices$170,300▼ (annually)$199,800
New Home Prices$201,100▼ (annually)$232,400
 
Realty Check Video Gallery
Discussing whether home prices will go up in 2010, with Kenneth Rosen, UC Berkeley Haas School of Business; Matthew Garr...
A luxury builder is joining the trend of trimming square footage, with CNBC's Diana Olick an the Power Lunch team.
 
HOMEBUILDERS TOP 10 INDEX
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...

REALTY CHECK VIDEO

» More

Current DateTime: 04:12:00 14 Nov 2009
LinksList Documentid: 30871294
Expiration DateTime: 11/14/2009 4:15:34 PM

RSS FEED

» Help

Current DateTime: 04:12:01 14 Nov 2009
LinksList Documentid: 30871303
powered by digg

Realty Check

Text Size
Oct.26
3:43 PM ET
Friday, 26 Oct 2007
Countrywide's Mortgages: They Can't Really Change A Thing

Angelo Mozilo
Angelo Mozilo

Is it possible to be bleary-eared? I’ve just hung up from a two-hour conference call with Countrywide’s [CFC  Loading...      ()   ] top dogs and all the top analysts that cover the company. I can’t say I learned anything new, except that CEO Angelo Mozilo admitted openly that the SEC is investigating his stock trades. We knew that already, but that was the first time he said it.

Then there are the things I really can’t believe he said, like that Countrywide is actually poised to gain market-share because so many other lenders went out of business, thanks to the shoddy lending practices being employed by all of them. I don’t doubt that it’s true, but should he really be saying that out loud?

Then there was Mozilo’s Caesar-like declaration that Countrywide is the sole survivor of the worst credit nightmare he’s seen in his quarter century career in the lending business. First of all, I don’t get it. Granted they didn’t go out of business, like dozens of others, but I believe there are still a few other companies in the mortgage game, like, oh, I don’t know, Indy Mac? Wells Fargo??

Oh, and I’m still trying to figure out how the heck Countrywide can claim that it’s refinancing or modifying $16 billion worth of loans, when it doesn’t own all those loans, it just services the bulk of them. My trusty "Realty Check" producer, Jill Thompson, spent much of yesterday calling those in the know who would know, because of course Countrywide wouldn’t call us back. She got every answer from they can to they can’t.

But then, finally, two hours into the earnings call, Howard Shapiro, one of my favorite mortgage experts (of Fox-Pitt Kelton Cochran Caronia Waller), asked the question flat out. Who has the legal authority to change these loans? There was a short: “The servicer,” from one of the C’wide underlings. “So you guys can do that?” Shapiro asks. Answer: “Yes.” My, not a lot of elaboration there.

But then, after a question on something else, Mr. Mozilo himself jumps in and says he wants to clarify the earlier question: “We have the authority to modify the loans within the parameters of the servicing contract...this will vary from investor to investor.” In other words, if the contract says they can’t modify the loans, then they can’t. Precisely what several experts told me yesterday.

So all this talk that Countrywide is going to save every borrower in trouble is, in part, just a lot of talk. By law, by legal contract with at least some of the Wall Street folks who bought the loans as nice big packages, they can’t change a darned thing.

Questions?  Comments? 

© 2009 CNBC, Inc. All Rights Reserved

Tools:
PrintEmailAdd This share icon
Next Post
  • digg share
ADD COMMENTS
Remaining characters


Current DateTime: 01:02:14 14 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 01:02:14 14 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 01:02:14 14 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 01:02:14 14 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters