(AP) - WHAT: Countrywide Financial Corp., the nation's largest mortgage lender by volume, has had its ups and downs in its nearly 40-year history. But the Calabasas, Calif.-based company is now facing what could be its toughest challenge amid a severe housing downturn and soaring mortgage defaults.
HOW: The company has borrowed billions of dollars and increased its access to even more credit. It's also eliminating thousands of jobs and shifting its loan production through its retail bank while focusing on making prime loans to borrowers with good credit, a more conservative but less profitable strategy.
WHAT'S NEXT?: Analysts say the company should survive the mortgage industry shakeout that has forced numerous other lenders out of business this year. But Countrywide faces increased competition as rivals also look to the prime loan market. And market conditions are not expected to improve any time soon, with defaults escalating over the next two years as adjustable mortgages reset.
Showing posts with label Countrywide Financial. Show all posts
Showing posts with label Countrywide Financial. Show all posts
Sunday, September 16, 2007
Wednesday, September 12, 2007
Mortgage Brokers Paid Lobbyist $140,000
WASHINGTON (AP) - The National Association of Mortgage Brokers paid Porterfield & Lowenthal LLC $140,000 to lobby the federal government in the first half of 2007, according to a recent disclosure form.
The firm lobbied on legislation dealing with mortgage disclosures and reform, data security and other matters, according to the form posted online Aug. 13 by the Senate's public records office.
Countrywide Financial Corp., Wells Fargo Home Mortgage, Fannie Mae, Freddie Mac and others are among the association's members. Fannie and Freddie were created by Congress to make home ownership affordable for low- and middle-income people.
Countrywide and other lenders have been slashing jobs and borrowing money to stay in business as the housing slump led to jumps in mortgage defaults and foreclosures, particularly among borrowers with subprime loans.
Under a federal law enacted in 1995, lobbyists are required to disclose activities that could influence members of the executive and legislative branches. They must register with Congress within 45 days of being hired or engaging in lobbying.
The National Association of Mortgage Brokers is based in McLean, Va.
The firm lobbied on legislation dealing with mortgage disclosures and reform, data security and other matters, according to the form posted online Aug. 13 by the Senate's public records office.
Countrywide Financial Corp., Wells Fargo Home Mortgage, Fannie Mae, Freddie Mac and others are among the association's members. Fannie and Freddie were created by Congress to make home ownership affordable for low- and middle-income people.
Countrywide and other lenders have been slashing jobs and borrowing money to stay in business as the housing slump led to jumps in mortgage defaults and foreclosures, particularly among borrowers with subprime loans.
Under a federal law enacted in 1995, lobbyists are required to disclose activities that could influence members of the executive and legislative branches. They must register with Congress within 45 days of being hired or engaging in lobbying.
The National Association of Mortgage Brokers is based in McLean, Va.
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