Update: Layoffs at Countrywide

Monday night update: The LATimes reports Countrywide is laying off 550 workers: "One person close to the company told The Times that Countrywide was laying off 500 employees in Chandler., Ariz., where it has a major operations center, and 50 underwriters in the San Fernando Valley."

Previous post: Good morning. The Wall Street Journal reports that layoffs have begun at Countrywide Financial. The Journal doesn't say how many jobs have been trimmed, and Countrywide has not confirmed the report.

CNBC.com: "The job cuts occurred in the company's Full Spectrum lending unit, according to the Journal, which handles many home mortgages known as "Alt-A" ... As of June 30, Full Spectrum's sales force numbered 6,785, according to a filing with the U.S. Securities and Exchange Commission, accounting for more than a third of Countrywide's roughly 18,100 loan origination staff."

Comments? Insights? Email story tips to lalandblog@yahoo.com.
Photo Credit: Reuters

Comments

[Aaron in the IE]

A little more than 2 years ago I called Countrywide about a home loan. They carried my mortage on my previous home and seemed like a decent outfit. I called them to get the lowdown on 30 yr fixed. The sales guy on the end of the line kept trying to push me into an ARM. He kept going on about low rates and appreciation...I kept insisting on a 30 year fixed. He said that I was stupid for thinking that way...ARM was the way to go he said. I still have my house on a 30 year from Cal-Vet, I wonder if he still has a job.

[RadioManTodd]

Yup its true.

My brother called me Saturday asking "You're not in the process of applying to Countrywide for your mortgage, are you?"

Apparently my sister-in-law (his wife)'s cousin showed up to work at Countrywide on earlier that day, only to not have her network login work. A couple minutes later a manager with a security guard were standing over her, supervising as she cleared her personal effects from her desk, then walked her to the front door.

He described it as "pulling an Enron."

[Rich]

A friend described to me recently how her credit rating had been degraded because she was foolish enough to apply for a special rate Countrywide had advertised last year. The people at Countrywide had resubmitted inquiries at her credit reporting agency numerous times in order to drive down the rating (for some reason numerous inquiries are treated that way by the agencies, even though you obviously have no control over how often others are making inquiries on your record) which enabled them to offer her only a higher-rate loan. People who play dirty with the consumer deserve their pain...

[JB]

Can anyone comment on the local effect in the Thousand Oaks area? Particularly with Amgen also in layoffs.

[Cal]

Ventura County Star has a feature about the possible layoffs, but its too soon to know the real effects. The majority of the layoffs have yet to happen.

I would think the counties 2 largest private employers laying off a significant percentage of their workforce would have a dramatic effect on the county.

[Scott]

While it will be a pain to get those credit points back, it is possible. Tell her to call the big 3 and explain the situation.

Anyone know where the layoffs are occuring? I'm wondering if any of my neighbors in the Conejo Valley are out of jobs...

[Ace]

RadiomanTodd said 'The people at Countrywide had resubmitted inquiries at her credit reporting agency numerous times in order to drive down the rating '

This should not happen according to the big 3 credit companies. They expect you to shop for the best rate on a loan. Even if you apply for 10 mortgages in one week, it should not affect your credit score. You should have your friend call and get some answers.

Remember, as California residents, we are entitled to a free credit report each year from each of the three credit agencies. You can get the reports at www.annualcreditreport.com. I space my free reports out and pull one report from each company every 4 months. That way I can stay on top of identity theft.

[Tim K.]

Cal, I don't think Amgen and Countrywide are the two largest employers in this area. Care to site a source?

[Pete Viles]

Ventura County Star says these two -- Amgen and Countrywide -- are the county's two top private sector employers.
http://www.venturacountystar.com/news/2007/aug/19/residents-worry-about-local-economy/

[Cal]

It is so sweet that I have a stalker now.

[JamesW]

TimK

I'm curious to know who you have in mind as a bigger employer than Countrywide and Amgen in Ventura county.

I always knew Amgen was big, my parents live a freeway exit away from Amgen, and Countrywide was always big in Simi Valley.

[RadioManTodd]

Ace, I didn't say that but thats OK... but on the topic...

I always understood that numerous inquiries within a certain period (30 days) only counted as one inquiry when it came to those numbers... so I doubt the accuracy of the statement that they kept resubmitting to try and drive down the score to raise the rate.

[Steve]

Look at this chump, his tan is more important then his employees. This rube got where he is with BS, like what the entire industry is made of. I feel the reality is Countrywide is far worse off then they disclose. Within the next two weeks, they will either file or get bailed out by the Fed and he can go back to the tanning booth.