The beleaguered Countrywide Home Loans, Calabasas, Calif., is expected to shift its production into mostly GSE and government-backed loans as the secondary market's liquidity crisis worsens, according to a new report issued by Credit Suisse.Countrywide is not only the nation's largest overall residential funder, but the biggest subprime originator as well, according to National Mortgage News. In the subprime sector, it has a market share of 8.87%. The Credit Suisse report says the lender will shift "its origination mix towards predominantly [government-sponsored enterprise] eligible paper, which solidifies its ability to sell its production. Clearly, origination volumes should decline dramatically in the present environment." CS analyst Moshe Orenbuch notes that Countrywide has now tapped an $11.5 billion credit facility, 70% of which has an existing term greater than four years. He writes that the short-term financing market "has virtually shut down." In response to Countrywide's liquidity problems, Fitch Ratings downgraded the company's long-term issuer default rating from A to BBB-plus, citing "the unprecedented disruption in the capital markets." Moody's Investors Service downgraded the senior debt ratings of Countrywide and its parent company, Countrywide Financial Corp., from A3 to Baa3 and the rating on deposits of Countrywide Bank FSB from A2 to Baa1.
-
The Consumer Financial Protection Bureau has seen excessive property-inspection charges, fees that loan mods should eliminate and improper line-item labels.
23m ago -
Michael Tannenbaum, whose experience in the financial services industry spans over 15 years, has a track record of helping companies scale and grow.
3h ago -
A majority of consumers earning more than $100,000 annually said they were concerned about their own ability to purchase a home, demonstrating how affordability issues are impacting those at many socioeconomic levels, the University of Michigan study found.
4h ago -
The nonbank's results add to other indications that the first quarter's "higher for longer" rate scenario had an upside for efficient servicing operations.
5h ago -
The latest rate increases contributed to a 1% drop in purchases from the previous week and 15% annually, according to the Mortgage Bankers Association.
10h ago -
The top five producers had an average dollar volume of VA and USDA loans of more than $35 million in 2023.
11h ago