Countrywide Posts $1.2 Billion Dollar 3rd Quarter Loss
Countrywide Posts $1.2 Billion Dollar 3rd Quarter Loss
This was the first quarterly loss in 25 years and the subprime lending giant attributed the results in the latest quarter to inventory valuation adjustments stemming from a disruption in the capital markets, an 'abrupt' loss in demand for non-agency loans and securities, increased credit costs due to the weak housing market and restructuring charges.
Let me put that is layman's terms. The losses were because they cannot originate toxic loans anymore and sell them to unsuspecting borrowers and in turn flip these loans to Wall Street because they don't want buy that crap anymore. The housing market sucks and they can't off load the homes they have foreclosed on fast enough and they are sending money to India to the new loss mitigation call center. Did that help you understand? I hope so 
Countrywide's results for the third quarter of 2007 reflect the impact of unprecedented disruptions in the U.S. mortgage market and the global capital markets, as well as continued weakening in the housing market,' said Angelo Mozilo, CEO of Countrywide. "However, during the period we also laid the foundation for a return to profitability in the fourth quarter. Countrywide has responded decisively and taken the steps we believe are necessary to address the current challenging market environment."
So let me get this straight. They magically sent out their propaganda press releases claiming that they are now going to modify "x" amount of mortgages and they are now implementing all of these great humanitarian efforts to assist struggling borrowers to help them stay in their homes. All of this happened the week of their Quarterly earnings report. Well duh!
The reports come out this morning that they took a $1.2 billion loss and their crappy stock goes up. WOW! I am amazed how gullible and how easily manipulated the American people are. It never stops.
The facts are that the losses are much larger than on paper. They just have not been legally recognized yet. The "actual" losses have yet to be recognized due to the fact that they have not performed many loan modifications and their massive portfolio of REO properties continues to sit idly .
Countrywide is not required to report losses until these REO properties have been sold and also when loans have been modified or worked out in the form of a short sale or deed in lieu.
So all of this is just bogus numbers and media propaganda. If you buy into this BS, then you deserve your fate.
http://www.preforeclosureusa.com/foreclosureteam
http://www.savemyhome.tv/foreclosureteam
