Countrywide Financial announced that it will fire 10,000-12,000 employees responsible for approving and underwriting mortgages.

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  1. KingPsyz says:

    I hope they give the keys to the street to the ones who knowingly put people into unpayable loans.

    There’s really no excuse for this. Yes people should learn to live within their means, granted. But at the same time if someone tell them they can buy a home within their means as opposed to paying the same or more for rent in a shady area of town, how could they refuse?

    Credit and Income docs are pretty clear when it comes to showing how much someone makes, how much they spend, and what’s left. if you have a couple with a combined income of $40k and newly established, or shakey credit. Then logic says they can’t afford or are ready to purchase and owe on a 250k home with a 25% intrest rate, not including property taxes.

    The best part of all this is how many new homes are bought in homeowners associations, which is a criminal idea at best, which usually hide the fact that in many of these, even though you bought and pay for a home, you don’t actually own said home. So people are finding themselves in credit hell, because if they thought it was rough before with a 500 FICO, now they have a 350 score and a foreclosure…

  2. Ncisfan says:

    ooouch!

  3. Crazytree says:

    wonder how many of these people will now no longer be able to afford their Countrywide mortgages.

    almost gives “Countrywide” a new name… as in a Countrywide meltdown of epic proportions.

  4. stuckonsmart says:

    Borrowers — NEGOTIATE, NEGOTIATE, NEGOTIATE!

    Your lending institution does NOT want to own your house (called REOs). REOs cost them money and have very restrictive limitations on THEM. So unless you were a wild speculator and went into a deal you knew was “pie in the sky” come up with a logical, affordable plan that makes sense for you and the lender. Remind them that 80% of something is better than 100% of nothing. And you need to be just as reasonable as they need to be.

    BUT, don’t do anything except FIXED RATE THAT YOU KNOW YOU CAN AFFORD based upon your REAL, current circumstances.

    If on the other hand you were a “pie in the sky” wild speculator — go to hell for screwing everything up for ALL OF US!!!!! I am a conservative SAVER and if the Feds keep giving money away, I end up paying for your stupidity, because my money yields very little.

    Here’s a strange concept — forget unrealistically cheap money for Wall Street and the ruthless speculators. Base the time-value of money on REALITY. And if you’re a scamming mortgage broker — may you have your family jewels cut off.

  5. catnapped says:

    They’re still advertising up a storm, so it doesn’t appear to be more than a personnel shakeup (as opposed to a change in their business plan)

  6. dbeahn says:

    Are they also firing the upper management and CEO that authorized these tactics?

    ROFLMAO!!!

    Sorry, I couldn’t resist.

  7. SkyeBlue says:

    Isn’t there some aspect of the RICO laws they could charge these people with? How many BILLIONS of dollars is it going to cost the government (translate: We the People”) to try and fix the financial mess these people and other like them have caused?

    It’d be interesting if some investigative reporter just took the time to follow the money trail on all this just to see where it ends!

  8. tcolberg says:

    Countrywide is laying off 20% of their employees and is struggling to stay afloat. This cannot be discounted as a mere personnel shakeup.

    This is also bad news for the SoCal job market, something that I’m trying to get into- ouch.