Countrywide rumors I don’t think are manipulative... they’ve made tons of questionable loans and the paper market is dead even for good loans.... if they find they can’t sell their paper and get stuck actually having to hold most of the notes they have written, they’ll cashflow crunch quickly.
There are very few places these days whose business model is to lend and hold on to the note. The wheels are coming off the machine.
“. if they find they can’t sell their paper and get stuck actually having to hold most of the notes they have written, they’ll cashflow crunch quickly.”
They had enough cash to buy my mortgage last week.
IMHO, all this hype is much to do about a correction that was bound to happen. Rates go up and the people who had ARMS can’t pay. Banks knew it would happen. I think they are just trying to manipulate the market so their companies don’t have to take the hit.
i talked to a guy the other day who was almost paid off on his mortgage then refied through country wide... they told him it was a 40 year loan (it was 30 years with a balloon payment) ... he’s still trying to bail out but they want one years interest at 1616 interest a month as a prepayment penalty which would put him over what his home is worth...