Countrywide: More credit losses possible
It wasn't long ago that Countrywide Financial said it saw plenty of opportunity in the mortgage crisis. Weak hands would fail, Countrywide said, and Countrywide would benefit.
Times change. From Reuters: "Countrywide Financial Corp., the largest U.S. mortgage lender, said it may see more credit losses as downward trends in the economy and in the real estate market conspire to boost delinquency rates."
More: "In its annual filing with the Securities and Exchange Commission, released on Friday, Countrywide said rising monthly payments on adjustable-rate mortgage loans, also known as ARMs, could also prompt a rise in delinquencies."
Thoughts? Comments? Email story tips to peter.viles@latimes.com
Photo Credit: Countrywide CEO Angelo Mozilo by L.A.Times
We've just been assured by Judy Graff in the appraisal thread that no appraisal fraud happened over in the east end of the SFV valley. So these gems are clearly quite the steal for their buyers, instant equity.. /sarcasm
Posted by: Cal | March 03, 2008 at 12:07 PM
As the financial industy has been imitating the entertainment industry in turning out junk and passing them off as AAA blockbusters, so too has the real estate industry been sleeping with the porn industry (well, at least the last few years, it seems) in cranking out one obscenity after another (look at those obscene prices!!!).
And anyone in the porn industry will tell you, What goes up, must come down.
If it doesn't come down, well, I don't know what to say except there must be something fishy there.
Posted by: MyLessThanPrimeBeef | March 03, 2008 at 12:09 PM
Pending salees only count when escrow closes.
Posted by: stew | March 03, 2008 at 12:47 PM
Let me add some fresh sales straight from the oven:
19336 Topham St
Sold 11/20/2006: $840,000
Bank bought it back $651,000
Sold 01/06/2008: $485,000
Bank lost $355,000 or 42%
6130 Melvin Ave
Sold 12/28/2006: $1,060,000
Bank bought it back $892,869
Sold 02/13/2008: $701,000
Bank lost $359,000 or 34%
Also, might be off subject, but i noticed that zillow started to "scrutinize" the "low bottom" sales like these, and actually puts * next to it and claims it does not count that toward the "zestimate"...The logic behind this might be not to could those "bank bought it back" sales figures as legit sales which is true albeit most of them are lower than the last sale price.
However, if zillow does not consider the actual sales figures just because they are 30-40% below last sale in just over 2 years means couple of things:
NAR/CAR own zillow!
NAR/CAR pay zillow, like they pay our politicians!
Zillow is/was threatened to get sued by NAR/CAR!
Government is somehow involved in this...(as high house prices are excellent for the economy...)
Or something else that i missed...
btw: the 6130 Melvin Ave belonged to countrywide !!!
Posted by: Laker | March 03, 2008 at 03:15 PM
Inventories are drying up!
We don't see a flooding of the market.
Posted by: Joseph...The Real Estate Guy | March 03, 2008 at 10:37 PM
Seems like sales have been drying up not inventories:
"C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in January 2008 was 16.8 months, compared with 7.6 months for the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate. "
But thanks for playing Joseph.
Also, Another LA foreclosure auction posted by REDC, yet more houses NOT generating revenue for agents or cashing out homeowners. So the few sales that are happening are more and more likely to be giving money to the lenders, not private citizens.
Posted by: Cal | March 04, 2008 at 12:22 AM
Joseph...The Real Estate Guy,
Inventories are Rising! check housing tracker http://www.housingtracker.net/askingprices/California/
LosAngeles-LongBeach-SantaAna/LosAngeles-
LongBeach-Glendale
They are up 35% from last year...You see, as long as the YoY number is positive, even let it be 0.0001%, it means inventory is rising!!!
Rest assured it will continue to rise for the next 18-24 months!
the only flooding i see, is of RE agents / loan brokers flooding to find a real job...
Posted by: Laker | March 04, 2008 at 08:39 AM
I like how all the realtors are trying to post "rosy" comments about how good the situation is.
"Don't believe your own eyes, believe what I tell you".
Nice try realtors. Your easy days are over for a while.
Posted by: SJ | March 05, 2008 at 09:17 PM