Dollar Dives again
Dollar fell to its worst level against a blanket of currencies since 1973! We need another rate cut! Dollar is down to 103.07 against the Yen. The dollar index is down to 73.642.
Countrywide's Mortgage Woes Deepen
It's hard to believe Mozillo had predicted Countrywide will be profitable in the next quarter. It's even harder to believe he is getting away with all the lying. Mr. "I had to sell over $100 million Countrywide stocks for my grand kids education" Mozillo!
At end of 2007, paymets were at least 90 days overday on 5.4% of option ARM held as investments by Countrywide, up from .6% a year earlier. This is the junk stuff we told you about. It's worthless piece of junk that nobody wants to buy. Countrywide wants to keep it on it's book so it does not have to mark to market.
The company said 71% of the borrowers were making minimal payments. This is a great deal for the borrowers. Keep making the minimum payments then just walk away.
Countrywide disclosed that half of the $87.04 billion of mortgage loans held by its bank are backed by homes in California and Florida, two of the states hit hardest by falling home prices.
Further losses may lie ahead. Borrowers can pay down these lines of credit and then draw new funds later, Countrywide said. As a result, it said, the company's "maximum obligation cannot be defined."
Countrywide officials have said they didn't expect these losses in late October, when Chief Executive Angelo Mozilo forecast a profit for the fourth quarter. The company ended up reporting a loss of $422 million for that quarter.
Did not expect them? Next time, please read our blog to get a better understanding of your company:)
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