Analyst: B&C Freefall 'Astounding'

A research note written by an analyst at Countrywide Securities Corp. says the rate "at which the subprime market has fallen is astounding," adding that secondary-market investors are being highly selective in what they bid on.The note, dated Feb. 28 and provided to MortgageWire by a source, adds that the subprime business is "falling apart again this week," with negative media reports pounding the market on a daily basis. "There were very few whole loan pools that were out for bid in the last week, with most of them trading at a discount to par servicing released," writes analyst Vandy Fartaj. "Fasten your seatbelts, as we expect the volatility to continue in the next few months as the market reprices risk and tries to find a bottom." The report was written the day before CSC's parent, Countrywide Financial Corp., Calabasas, Calif., disclosed in a filing with the Securities and Exchange Commission that its subprime servicing portfolio saw its delinquencies climb to 19% at year-end, a 25% spike from the level recorded as of Sept. 30 [see item above].