What the writer of this blog failed to mention is that Countrywide's investment of the Virtual Hold system was installed at Countrywide--Bank not Loans.... WOW, brilliant Sherlock, didn't I say you will wait hours on the phone. And the loan manager himself told me that number isn't really a legitimate Countrywide number, even though it's listed as the contact number on every loan application. Would you like a name: Dillon Shaeffer. WOW, didn't I just say you would be on the phone for hours and it would never be answered. A strategy to make it look like you're doing more business than thery are. yet. He also claims CW Loan production is dropping to the floor (READ the news - At the time of the writing... that was the big news!), yet they have two hour hold times (on a number which goes nowhere according to Mr. Shaeffer, intending to keep people holding until they give up... and hang up) in their sales queues. Hmmm.
Countrywide is an easy target these days (because they've made themselves a big target with gimmicks and comments that have even turned away potential large institutional investments - ask the CEO about that one... as it's all in black and white) given they are the largest (one reason for success - largest... Hechingers, Kmart, the original Macy's and many others come to mind. This is your sole investment tool... WOW, a true strategy for FAILURE is to use only one factor in your investment decisions! Are you down to your last $2 and trying to talk the NAV of Countrywide back up by your words only. Try some research, it really does work. It's not fool proof, but it certainly helps. Take your last two bucks and try the lottery!!! sub prime lender in the world amidst a national housing depression. Not only will CW come out this but they are likely the only sub prime lender with the resources to survive, which will make them even stronger when the housing market turns. (It takes more than resources that a CEO turns off with ignorant comments my friend). Considering you only listen to rederick, read short stories, and have conducted no real research of your own, I hope to God there aren't many people with an open ear to your bableings. Thank you Miss Annonymous for your enlightening display of ignorance and for your courage in disclosing your real identity.
As we often find 'the bigger they are - the harder they fall.
Sometimes the best way to really find out what a company is made of is to test them for all it's worth, and that's what we're doing with Countrywide. Why Countrywide? Take a look at the slogan on the loan document folder... 'Countrywide Can!' The truth, Countrywide CAN'T! But where and how does the truth come out? First, it's all over the news. Some truths and some out and out misleading statements. I particularly like the anouncement of how proud they are of the new virtual hold program which customers are qouted to love. The truth, try being on the line for over two hours with nothing to keep you going but the familiar 'Your call is important to us.' And this is the contact number on the loan documents. Try it yourself... 1 (866) 391-7590, and whatever you do, don't hold your breath.
What we're looking at: 1) A credit rating of 785 (well above sub-prime). 2) A home worth well over half a million dollars in a area where homes in this price range are selling within 3 to 6 months. 3) Well over $100,000 in solid equity as noted by Countrywides' own appraiser (and yes, the appraisal company is clearly a Countrywide affiliate. 4) A potential customer who is nowhere near hard up for cash. What happened to the simple rule that the banks only want to lend to those who don't really need it? It is afterall your safest bet, especially with this kind of equity. 5)Attempting to double dip on title insurance, overcharging by over $2000. 6) Claims that the home has back taxes owed in the thousands, which will have to be paid at closing. Try again my friend, taxes are paid into escrow and are completely up to date. A call to Chase would confirm this. 7) A quite severe lack of straight answers, everyone passing the blame. Especially when the underwriter is to blame... A good one, when you are in fact your own underwriter.
The list could go on and on, but the point is made. Unfortunately, we still have some leftover shares from good ol Countrywide in our portfolio, but as luck has it, only in the TK account.
It's important to note that what this isn't, is company bashing. That would be against our investment principles and personal policies. What's even more important to note, is that this is solid personal research. While they think you are one of the dupes who could quickly bring back some positive cash flow (we can't be sure of exactly what they're up to), they are operating under the watchful eye of some intelligent consumers. Many of whom are only getting smarter as the days go by. To those who think we're all idiots waiting to be snagged into another trap... beware, the public is becoming more and more aware. The old tricks may not work so easily anymore, and I'll be on the watch for the new ones. A documentary of our research will be sent to company officials and the appropriate banking commission. I hope there are a lot of folks at Countrywide chained down at the office, because the evidence shows that thousands of additional lay-offs of the disoriented may be inevitable. I can see why the news said that Countrywide loan production is dropping through the floor, I would say close to a nonexistant operation. So who are they making loans to? We may find the truth in the end to be that operation has in reality ceased altogether. A lot of that is going on, while company officials with many firms have allegedly dumped personal shares in the midst of deceipt. Countrywide is in fact one of the most recent, with allegations that company officials dumped shares in the $40 range after artificially raising the share value with false and misleading statements. The NAV continues to drop. Buyer, borrower, and especially investors beware!
Note: The information contained within this writing is strictly the opinion of the writer, and is in no way intended as advice in any way, shape, or form for any particular investment or methods of investing. They are not endorsed by any known brokerage firm or news agency. Furthermore, the writer believes that you should always look at your own investment objectives and you should never enter into any investment solely on someone elses opinion.
