Whats your take on Bank of America bailing out Countywide?

I think that it was smart on BOA's end to low ball them asap I mean they are knee deep in Countrywide. Im also wondering about this SRM hedge fund group that claims to own like 10% of Countrywide as well.
But then again im kinda glad I dont own any of either company because I would hate to see BoA go down with Countrywide.

Anybody else....

Does anybody own some BoA and happy or not happy about this?

Does anybody have a mortgage with Countrywide...thoughts opinions?

Other than they both suck, I have nothing really to say.

Well I have a little something to say. I am a broker and whenever I look at rates, neither of them are even a thought in my mind.

BoA had a ton invested, so based on what they had invested, the overall purchase was a no-brainer.

Was it a good investment? Not right now, but it could pay off huge down the road.

asloper,  what is that program you talked about concerning paying off the mortgage through a direct acct..I forget the name, but I have seen it advertised and the cost is pretty expensive. What do you know about it?

7 yr mortgage banker here.

BofA's investment WILL PAY THEM down the road.  It basically allowed them to get their foot in the market to the 800lb gorilla.  BofA wasn't able to take advantage of the haydays (04-06) because they never went out on a limb to loosen their underwriting guidlines.  I NEVER sent my customers to BofA because (1) could never qualify customers there (2) they were like IBM when the rest of the country was on Yahoo and Google,catch my drift?  They were never able to expose themselves to the wave.

Even tho Countrywide is sitting on a huge percentage of bad notes right now, they DO have the exposure to all the markets.  I'd say 60% of the loans are backed by Countrywide right now so eventually when the market turns back (which it will in about 09) they'll be there gobble up applicants again.

As of todays market I will say that CW is atleast my 1st or 2nd call when I shop for rates for my customers.  Primarily because they're still relvativily easy to approve my customers.  Not to mention I still have an open line to the underwriters and management there.  I guess thats the perks for being such a loyal broker to em.

3

Do you really feel that the housing market will be back as early as 2009?  If the consumer is in as much trouble as most seem to think, and the housing supply overhang is as estimated, it would seem to take longer than that to me. Not arguing, just wondering what exactly points to that early a solution to this mess. I hope you are right, but the data I look at makes me wonder...