CFC's B&C Overdues Hit 36%
At the end of March, 36% of subprime mortgages being serviced by Countrywide Financial Corp. were in some stage of delinquency, according to a recent public filing by the company.
Countrywide services roughly $100 billion in subprime mortgages, which means nearly $36 billion worth of loans are at risk of going into foreclosure.
According to the Quarterly Data Report, CFC is the nation's largest subprime servicer. The 90-plus-day-late ratio on the portfolio is 21.04%.
A year ago the 90-day rate was 7.82%. Countrywide is in the process of being sold to Bank of America. The sale is expected to close by the end of the third quarter.
CFC is no longer funding much in the way of subprime loans unless they can be sold to Fannie Mae or Freddie Mac. When BoA first announced plans to buy CFC in January it said the lender - once under its control - would exit the subprime niche. (BoA has made no mention of the fate of CFC's subprime servicing business.)
Delinquent subprime loans are just one of many problems CFC faces. The delinquency rate on prime home-equity loans being serviced by the company rose to 8.29% at the end of the first quarter, a stunning 120% increase compared to the same quarter last year.
As reported, CFC is under investigation by some states for its foreclosure practices. (c) 2008 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com/ http://www.sourcemedia.com/