Editorial, Mortgage, REALonomics
Applauding Countrywide
August 17, 2007 by REALonomics · 2 Comments
REALonomics applauds Countrywide’s recent bold moves to reposition itself. The business strategies of Countrywide are right on target and exactly what is needed in today’s doomsday market. Countrywide’s clever market expansion strategies are in full swing with the hiring of loan officers from competitors and strategic acquisitions.
Despite the irrational and irresponsible statements by Merrill Lynch & Co. that Countrywide Financial was facing potential bankruptcy and the equally foolish downgrade of its stock to “SELL” status, Countrywide came out swinging, moving its stock position to neutral and gaining back some of its losses.
On August 18, 2007, in an attempt to further fan the flames, the Los Angeles Times said,
Anxious depositors clutching withdrawal slips filled Countrywide offices for the second straight day. In Beverly Hills, the company placed extra chairs in a waiting area and asked customers to write their names on a sign-in sheet. By 10:45 a.m., 30 names filled nearly 2 1/2 pages.
Countrywide funded approximately 1 of 6 loans in the first half of 2007, its fundamentals on the management, liquidity and banking side are extremely sound. In short, Countrywide is well run and its recent adjustments once again demonstrate its market savvy. In addition, and for now, we can breathe a small sigh of relief that the Federal Reserve adjusted rates, a move called for 30-60 days ago.
Will Countrywide survive? Yes, it may be forced to morph into a more streamlined machine, as REALonomics has been saying the real estate industry must also do.
There is no “long term” view of the industry at the moment. The rules governing how we execute are being rewritten, almost daily. Over the short-term, we should not engage in panic-mongering, as did Merrill Lynch.
When the market opens Monday morning, let’s see where we go. The mortgage tree is being shaken…let the bad fruit fall to the ground. In the meantime, REALonomics applauds the brisk, decisive management positions being exhibited by Countrywide Financial Corporation.
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GOOD JOB Mr Teel!!! Thanks for stepping up to the plate as an experienced realist and to applaud Countrywide’s recent moves to position themselves and the mortgage brokers to better help the real estate buyers/seller in the times to come. We may not have created this world wide economic condition, but we can take a positive stand to be creative leaders in the sitution we find ourselves. Thanks Again! Jack Jewett, Broker Owner of Advantage Realty and Advantage Mortgage Corporations.
Countrywide has some smart people in the ranks. Merrill Lynch is far from being “All That and A Bag Of Chip” and the REIT market. They need to look at the whole including Citigroup. The question is what is to be gained for Merrill?