Countrywide Cuts 500 Jobs

Countrywide, WaMu got $35M as they upped risky loans

(NEWSER) - Rick Perry handed mortgage lenders millions to draw them to Texas—right when their risky lending practices surged. The governor gave Countrywide $20 million and Washington Mutual $15 million in what he called an exemplary job-creation move; in effect, that $35 million subsidized dangerous subprime lending, an AP analysis of data and records finds. And when some began to fear the impending mortgage crisis, Perry's rep shrugged off their concerns as “slightly alarmist.” More»

(NEWSER) - Troubled mortgage lender Countrywide announced today that it would cut up to 12,000 jobs–or some 20% of its total workforce–over the next three months. The Wall Street Journal reports that, as the subprime debacle rocks the housing market and the lending industry, Countrywide expects to issue 25% fewer loans this year. More»

Top US mortgage lender caught in the squeeze

(NEWSER) - Loan giant Countrywide saw its shares plummet 13% yesterday after the company experienced trouble borrowing money in the market for short-term debt. A Merrill Lynch analyst downgraded the stock from "buy" to "sell," sparking talk of possible bankruptcy, reports the LA Times. Before today's open, the company announced it's drawing on $11.6 billion in unsecured lines of credit. More»

Senate panel says lender knowingly built 'mortgage time bomb'

(NEWSER) - Washington Mutual made subprime loans it knew would go bad, then packaged them into risky securities, creating a “mortgage time bomb,” according to a Senate report. The permanent investigations subcommittee is grilling former WaMu execs this morning. The report also says the bank packaged and sold loans it knew were tainted by fraud, without disclosing the fraud to buyers, the Los Angeles Times reports. WaMu even pushed some buyers who qualified for prime loans into subprime ones. More»

Blacks were forced into subprime mortgages, group says

(AP) - The NAACP is accusing Wells Fargo and HSBC of forcing black people into subprime mortgages while whites with identical qualifications got lower rates. Class-action lawsuits were to be filed against the banks today in federal court in Los Angeles. Similar NAACP lawsuits are pending against a dozen other subprime lenders. "This is systematic, institutionalized racism," said an NAACP lawyer. More»