The Power of Media and Countrywide

Matt very good point.  If the public is perceiving them to be in trouble, they may shy away from using CW.  I had not stopped to consider this either.

Maggie, I did not either... and normal I never give out the information until the end because it really does not matter.  I am glad I did in this case.. Can you imagine if we got to the closing table and they did not want to be with countrywide?

Good observation. I have REALTORS asking me NOT to use CW. The press is having fun with their distructive ways, aren't they?

Matthew, well I hope the media is happy for once again causing a negative situation.Yes, CW is still funding just certain types of loans and this is so sad for the buyers. I'm assuming that even with all the information you gave them they still changed, ( or made you change them )

Ed, They really are... The sad part is how many people are out of work now from this.

Missy, No they stayed and kept the program that they locked into.  For them it was not worth it they just wanted to stay where they where.  It was a unique situation because I normally have several lenders that I could shift to but not in this case.

Matt, This just shows again that our perceptions are our realities. These folks feel that CW folding would affect them and there was nothing you could do to change their perception. CW is still going strong but I just wonder how long that last.

Bryant, Very true.  As far as how long they will last who really knows.  Right now they are in business and funding loans.  If people are with them and they fold the truth is nothing will happen to those loans. 

Matt,  Wow!  I'm just as surprised on one level as everyone else here, but also can understand this.  But even after you explained this to your client, they still wanted a different lender.  Wow! 

Marc, Yes they did not want to go with Countrywide.  They stayed with the same lender that they locked with.

I have absolutely no problem with them. I have my first with them and about 2 months ago we close on something and the buyer used Countrywide....no problems ever with any loan we had with them. I think maybe the B and C retail end would be where they are talking about but I'm not sure

Matt - If you want to do a full fledged comparison, Countrywide stacks up against anybody.  While I'm not a cheerleader and Countrywide does have problems, our perception is so skewed by the media that it is getting in our way of reality.  Perhaps the Media should start lending money:-)

Matt ~  I am with you 100%.  been there with clients as well.  My clients, though, were afrid that at the time we were to close, that Countrywide would go under and they would lose their loan.  I do know of cases (not with Countrywide) where that did happen for people.

Actually I'm with the consumers in this case.  I've had two bad experiences with CHL this year but luckily they were both with refinances, not purchases. 

In one case the loan was not funded after the docs were drawn and signed by the borrower.  Imagine needing to explain that situation to the borrower. 

The second situation was for a refinance of an existing CHL mortgage to stay with CHL but at a lower rate.  After initial approval and payment of a $395 application fee CHL changed their underwriting standards (needing at least 2 years in same line of work, not the originally disclosed 1 year, 10 months) and would not issue the revised loan.  And of course they didn't want to return the $395 but luckily the credit card company dispute ended up with a satisfactory resolution on that problem.

So after two 'promises' of lending money, CHL pulled back and left customers empty-handed.  Maybe this is common of all the lenders, I don't know.  And maybe they would NEVER do this in a purchase-money situation, I don't know.  But honestly, I don't think I could currently recommend CHL to any of my buyers unless I knew that loan funding was a contingency of their purchase contract and even as bad as today's market is there are few sellers willing to allow for such a contingency.

I know this rant is slightly off-topic but the problems are not just limited to the picture painted by the media.  My limited experiences with them this year are just not good.

I have closed a few with CW this year with no problems. It is sickens me to see what the media can do.

Neal, I have not had a problem with them.  Right now though because of the lay offs they had the turn times are slow. But as long as you know that upfront.. you should be ok

Jason, I agree. I have lenders that offer much better rates but at the same-time they are very strict in underwriting and you can never get an underwriter on the phone. At least with Countrywide you can speak to someone

Sarah, I understand where my clients where coming from. I just feel bad because the media is making it sound that tomorrow they are going under

Michael, Depending on when those deals you are talking about where going through every lender was pulling back at the same time. They where dropping programs like crazy. The investors just stop buying everything on Wallstreet.  I know you are upset but very easily it could have been many lenders doing the same thing as Countrywide.

Keith & Robin, True.  The sad part if the media will push until they really do go under. Then leaving many more people out of work

Matt,

Very good post. Some people think CW doesn't exist anymore. You make some great points here.

Thanks.

Karen, Thank you.

Matthew ~  I posted a blog several months about the fact that the media seems to be controlling more than it should!  I feel your pain on behalf of the entire industry!

Sarah, I remember it. It was a great post. 

Matt.... how about program XQJ150.....  lol   Hey, the average consumer just doesn't know. The only problem that you would have, with any lender, is if they went out of business in the middle of the approval process. But again, the consumer doesn't understand once it closes.

the power of the press! it is scary, isn't it?!?!

Matt ~  You are far too kind. I do not know that I would call it great, but it was certainly passionate!  Hoping you had a great weekend!!

Matt,

Actually, Friday showed CW stock up .58 to $9.80. so, they will probably get back on the right track.

Geeze, you you think the Dolphins can beat the Jet's today?

I almost wish people didn't read the papers. They are too easly led in different directions by confusing stories.  CountryWide is still around and may survive this market meltdown.  But, they certainly have their lumps to take.

CW has done my clients good for many years. They are always my first recomendation. Anytime a clients has questions about the present CW situation, I put it very simple, when you are the one of the largest mortgage providers, you buy and service many of the loans that originated from the sub-prime market and from companies who originate many of the loans and sell them to the major players. Countrywide must now harvest their fields, seperate the wheat from the weeds. And then plant a new crop for better return.

Jeff, Agreed the average consumer doesn't know.  Which makes it even harder for us when the news media gets involved

Bill & Barbara, Very Very true

Sarah, It was great!  Had a great weekend. It was my weekend with my son so it was a blast

Karen, How sad is that we can't even beat the jets?..:-(

Dan, I agree they need to take their lumps like everyone else. I am not in anyway a cheerleader for them. They do offer some good programs and at least with them you can always speak to an underwriter.

Paul, You are right they need to plant a new field..Great analogy

Matthew - It is amazing how the media can really affect how the public perceives things.  It seems to me that one they have the loan, it shouldn't matter much who it is with.  Don't most mortgage companies sell their loans anyway? 

If only the media could find and run stories about how the market is getting better.

Martin, True most sell their loans but Countrywide usually holds on to service them for $$

Matt: According to a recent study 66% of American adults think the Mortgage advertising is not credible.  The Mortgage Industry seems more like a used car industry to a lot of people right now.  Once someone has something in their ahead about a particular bank, CW for example, they are dead set against it. 

Also, don't you just love it when you counsel them on a rate lock and then they want the new rate!  Like you never had the conversation in the first place.  It's frustrating but I still love what I do!

Matt - I just have to weigh in here.   Given that I am a CW LO.   I have been with the company since 01.   I have tremendous faith in our ability to navigate this terrible mess we are all in.  Kudos to you in trying help your client understand that once their loan closes, they will be "safe"    We service 1 in every 5 mortgages in the country.   We are the largest service provider in the Country.   CW posted their fist loss in over 25 years.  Because we are quite diversified, I truly believe we have the liquidity to survive these rough seas.   Having said that, I too am a consumer and understand the uncertainly that many people feel about the press we have received - along with many others. 

I believe it is MY job to educate my brokers and borrowers and help them feel confident in our stability and back it up with credible facts.   Still not everyone is going to embrace what I or my business partners say.  Sometimes, it's a matter of "Don't confuse me with the facts, my mind is made up."    There is nothing anyone can do about that.   Unfortunately, we have no control over the press and their need to pump ratings by giving only bits and pieces and not the whole picture (frankly I don't think they even know the whole picture)  Fear begets fear.    As Real Estate professionals, I know you deal with the same thing in that real estate is local and you would think every neighborhood in America has foreclosure notices in every other house.  It's out of control

We move forward being the best we can.  I hate that many see our profession as "used car salesman"  I like to think that the majority of people in our profession endeavor to do the right thing by their clients.  A few bad apples can give a bad name, but in the end, we have to hold ourselves to a personal degree of integrity.

Thanks to all of you who have the clarity to see the difference and support CW.

Matt,

That is sad, it's like slaughter house 12? Dolf's I burned my t-shirt - AGAIN!

Matt -  I have had clients in the past few weeks flat out ask me who the investor I plan to use is. Worse than that, I had a client last week tell me I was ripping him off because they got a hold of a wholesale rate sheet. Too bad they couldn't read it as the rate they claimed the investor was offering clearly showed it cost 1 point. And that was before the cash out hit of .75

The media is killing us!

by the way -  great avatar! 

I feel your frustration at advising your clients and them not taking your advice. Then they come back to you wishing they had taken your advice. I agree there is a lot of distrust out there that has been fostered by the media but there is also a lot of distrust that has been fostered by unethical loan officers. I am a loan officer and it is my sincere hope that many of the grifters that populated our industry will (or have) exit stage right to another industry. I hear lots of Americans have rich relatives they never knew about in Africa who recently died tragic deaths and have left them lots of money...all I need is your bank account number so I can wire your inheritence....blahblahblah! I will be glad when our industry is able to regain the trust and respect that most mortgage professionals deserve. I recently wrote a blog concerning the demise of the subprime market and the resurgence of FHA, it is hopefully informative and definitely encourages mortgage professionals to step up to the plate.

Rey, I did not know it was 66% wow.  Your right but what are you going to do?

Linda, It must be hard being a Countrywide LO right now.  As I said I was not a cheerleader of the company but the fact is they are here and they are still funding loans.  Thank you for commenting

Karen, I know how you feel

Lewis, DOn't you just love that?!  lol

Rich, I know lots of the bad have left the industry. Now we just have to work on changing our image

Matt ~ I think it is difficult for many of us in the industry, regardless of the company we represent.   Unfortunately, we (the mortgage industry) have developed a challenging reputation, and the consumer is taking a buyer-beware approach.   Time will bring things back to a better balance and as Rich mentioned, we have to regain the trust and respect within the industry and hopefully many of the bottom feeders are exiting.   In the end, it is up to each of us to hold ourselves to a higher esteem.

Linda, I agree with you. In the end it is up to us.  I really don't want to see the Goverment come in and try todo things.  Lets face it they will really mess it up.  They can't even keep a balanced budget so how can the really help our industry?

Hi Matthew ~  Any time spent with our kids is meaningful...especially when you have limited time with them.  I am glad you two had fun!  How old is he?

Sarah, My son will be 6 next month.. Great age

Matthew- I am just so sick of the media. The Sun Sentinel just said in their business section for buyers not to buy houses right now! Can you imagine what high horse they are on? Just like they were saying buy, buy, buy when the prices were going up through the roof at the bubble! Katerina

Katerina, They don't know what else to write so they just go with what they feel is the PC thing to say.  Why should they actually look into something and research it.. Oh that would be an effort for them..lol  Ok.. I feel better now...:-)

Matthew, I learn much from yours posts, and I appreciate them.

Robert, Thank you. I do try..

Robert, Thank you. I do try..