Countrywide Exits Georgia Subprime Market

Countrywide Home Loans, Calabasas, Calif., has announced that, along with its sister company Full Spectrum Lending, it will no longer accept subprime loan applications in Georgia for amounts under $322,700.The company had not been making what are defined as high-cost loans under the Georgia Fair Lending Act, but the latest move means it is out of the subprime market completely in the state. "We deeply regret having to make this business decision; however, our ability to make subprime loans in Georgia has been adversely impacted by the state's new legislation and the market's reaction to it," the company said. The secondary market and the rating agencies are in an uproar over the GFLA, especially over the assignee liability clause. Countrywide can be found online at http://www.countrywide.com.