Wednesday, January 9, 2008

Will it go bust? If so what happens?

Countrywide shares take another hit

Nation's largest mortgage lender tumbles after report alleging 'recreated' letters in customer's bankruptcy procedure and analyst's comments. Earlier in the session, shares bottomed out at $5.76 - their lowest since early 2000 - after speculation the company was planning to file for bankruptcy itself. Countrywide later denied the rumors. What happens when the big boys go bust?

Posted by mark @ 10:02 AM (550 views)
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5 thoughts on “Will it go bust? If so what happens?

  • For those who don’t know, Countrywide (USA) the mortgage lender is NOT the same as Countrywide (UK) the estate agents. The two are completely unconnected.
    Countrywide (USA) are America’s largest single mortgage lender but they only hold 15% of the market.

    When they go bust, a lot of staff will lose their jobs. Their payment-collections side will be bought up by another company. In America a lot of small mortgage-lending companies have ceased trading – see http://www.ml-implode.com: The Mortgage Lender Implode-O-Meter for details (212 and counting).

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  • That assumes the buying company can borrow money to buy with!!!

    what really happens when a big boy goes bust? Panic shear panic…. that will spread to the UK.. 15% is pretty big…

    lol

    then house prices plunge…lol

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  • Of the UK lenders, I’m watching the fate of Paragon with interest – this former champion of BTL lending appears to have stopped writing new business, but is offering renewal terms to existing borrowers.

    If there are some people left who are dumb enough to still want in on BTL, they are struggling now to find a lender..

    BTW the uptick on Halifax’s data shows not an upturn in prices, but a total lack of transactions at the bottom end of the spectrum.

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  • Mmmmm I thought the Countrywide debacle was over…?

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  • Mark: The buying company won’t have to pay much, if anything, to take over the operations. Barings bank was sold to ING for £1. BMW sold Rover to the “Phoenix consortium” for £10. Northern Rock, if it finds a buyer, will go for a song too – its share price has already collapsed making it much cheaper now than six months ago.

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