Inside the Countrywide Lending Spree

Willful Blindness- Does it exist in your mortgage company?

It is wonderful that President Bush's plan to help the disenfranchised keep their homes, and in some (albeit, few) cases, this program will work. But like the cut in the commercial lending rates, this is more symbolic than helpful, and the true problems will persist after the assistance package is complete.

With the residential lending capital markets virtually shut down, there is little good information that is known.  But there is a lot of sentiment, including fear.  I look to a firm such as the New York Times to allay fear and communicate good information during these times.  Rather, it seems that someone at Countrywide has upset someone at the NYT, or else the NYT is picking low...

The Countrywide malpractices, of offering huge commisions for subprime loans  is worth examination as a classic case of killing the golden goose. The non-transparent dealings also show how, the Customer is KING. The non transparent operations, hidden clauses, etc have to be challenged in a suitable judicial forum, to protect the customers, who have been shortchanged.Lastly, the Great USA, the...

The  referred  article  raises  several  interesting  questions - the conduct  of Fed policy, ethical  lending  and  mortgage practices  and  the  effect  of  all  the  above  on  the  valuation  of  CDO  and  derivative  instruments. In  this  analysis  I ...