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Countrywide Uber-boss Going Bearish

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http://yahoo.reuters.com/news/ArticleHybri...51-23_N25145429

Mortgage lenders grapple with deflating housing bubble

Wed Jul 26, 2006 3:51pm ET163

By Al Yoon

NEW YORK, July 26 (Reuters) - Downward momentum in the U.S. housing market is leading some of America's biggest mortgage lenders to adapt business plans for even softer demand.
The lenders are launching new cost cuts and risk reduction strategies that suggest growing concern that the outlook is worsening for the $9.5 trillion home mortgage industry.
It marks another racheting down of expectations for the big players in a housing market where slowing sales have pushed inventories up 39 percent in the past year and set home prices on the path of decline, some analysts said. Builders of new homes, meantime, reported the lowest confidence about their prospects in June than anytime in the past 14 years.
Lenders are bracing for further declines.
"I've never seen a soft-landing in 53 years, so we have a ways to go before this levels out," Countrywide Chief Executive Officer Angelo Mozilo said on a Tuesday conference call. "I have to prepare the company for the worst that can happen."
At New Century, one of the nation's biggest subprime lenders, Chief Executive Officer Brad Morrice told Reuters the company has tightened some credit requirements as it puts "more thought into loans you want to make or don't want to make."
Countrywide, the nation's biggest mortgage lender, on Tuesday said it plans to cut as much as $500 million in costs in the next year as it girds itself for an unsettled market.

Realism from accross the pond where the same conditions exist--affordability, overpriced houses, debt, proliferation of IO mortgages, subprime lending growing....... HPC has truly arrived in the US--we are next. :o *

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* :D

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http://yahoo.reuters.com/news/ArticleHybri...51-23_N25145429

Mortgage lenders grapple with deflating housing bubble

Wed Jul 26, 2006 3:51pm ET163

By Al Yoon

NEW YORK, July 26 (Reuters) - Downward momentum in the U.S. housing market is leading some of America's biggest mortgage lenders to adapt business plans for even softer demand.
The lenders are launching new cost cuts and risk reduction strategies that suggest growing concern that the outlook is worsening for the $9.5 trillion home mortgage industry.
It marks another racheting down of expectations for the big players in a housing market where slowing sales have pushed inventories up 39 percent in the past year and set home prices on the path of decline, some analysts said. Builders of new homes, meantime, reported the lowest confidence about their prospects in June than anytime in the past 14 years.
Lenders are bracing for further declines.
"I've never seen a soft-landing in 53 years, so we have a ways to go before this levels out," Countrywide Chief Executive Officer Angelo Mozilo said on a Tuesday conference call. "I have to prepare the company for the worst that can happen."
At New Century, one of the nation's biggest subprime lenders, Chief Executive Officer Brad Morrice told Reuters the company has tightened some credit requirements as it puts "more thought into loans you want to make or don't want to make."
Countrywide, the nation's biggest mortgage lender, on Tuesday said it plans to cut as much as $500 million in costs in the next year as it girds itself for an unsettled market.

Realism from accross the pond where the same conditions exist--affordability, overpriced houses, debt, proliferation of IO mortgages, subprime lending growing....... HPC has truly arrived in the US--we are next. :o *

____________________

* :D

I thought estate agents and mortgage lenders were despicable spinning VIs who shouldn't be trusted further than one can throw them...??? :blink:

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I thought estate agents and mortgage lenders were despicable spinning VIs who shouldn't be trusted further than one can throw them...??? :blink:

Only when they say something that doesn't fit the bear argument.

Same goes with the media esp. CH4 and BBC and the Haliwide (lying scheming batsards when prices rise, but quoted by bears as evidence when they report falls). Bit of hypocrisy, that's all <_<

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http://yahoo.reuters.com/news/ArticleHybri...51-23_N25145429

Mortgage lenders grapple with deflating housing bubble

Wed Jul 26, 2006 3:51pm ET163

By Al Yoon

I need some help with the physics here. Can bubbles actually deflate? I thought they were meant to POP so everything within them CRASHED! Deflating might lead to something landing softly and that just wouldn't be right now would it?

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This bit is pretty amusing:

http://yahoo.reuters.com/news/ArticleHybri...51-23_N25145429

Mortgage lenders grapple with deflating housing bubble

Wed Jul 26, 2006 3:51pm ET163

At New Century, one of the nation's biggest subprime lenders, Chief Executive Officer Brad Morrice told Reuters the company has tightened some credit requirements as it puts "more thought into loans you want to make or don't want to make."

Hang on a min... surely the same amount of critical thought should go in whether credit is expanding or contracting. The only difference should be the decision you come up with at the end, no? ( ;) )

New Century sound as though their business practice is more akin to, "Just lend the bloody stuff for crissakes, we'll do the calculations when things start going pear-shaped."

Why am I singularly non-disappoined to learn that subprime lenders in a credit boom behave just like newbies in a stock market bubble ... B) Still, I'm sure the majors wouldn't dream of running a business in such a hap-hazard, non-risk assessed manner :lol:

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  • 343 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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