Countrywide says it will modify $16B in loans in an effort to slow the tsunami of foreclosures and repossessions that it unleashed on the global economy. [BusinessWeek]

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  1. liquisoft says:

    Interesting plan of attack.

  2. mantari says:

    See, I don’t get what the exact plan is to help out.

    They say they’re going to refinance or adjust the terms. So are they going to drop the interest rates down to something below what they’re offering for a conventional loan? Or are they going to ‘help them out’ by switching them to a 40 year mortgage in order to drop the payments?

    Or is there enough of a difference in the payments (for most) if they go to a 30 year fixed?

  3. forever_knight says:

    i’d like the details on this wonderful plan.

    this is just a drop in the bucket. they administer, what, a trillion in mortgages?

  4. tadowguy says:

    I can’t wait for my rate reduction, as a responsible, bill-paying person with 27 years left on his fixed rate mortgage. Think I’ll get maybe a .5% reduction?

  5. hypnotik_jello says:

    haha chumps

  6. iamme99 says:

    Businesses don’t give away anything for free. There are always catches, and given Countrywide’s past history, I would read the fine print very carefully.

    Speaking of the subprime mess, here is a good article to read:

    [www.investorsinsight.com]

  7. doodaddy says:

    So, how much does Countrywide stand to make on each “refinance”? What are the fees? ;^)

  8. SirKeats says:

    i’m with tad. am i going to get a sweet deal offer too or do i have to become a non-payment making scumbag in order to get my lower interest rate?

  9. sburnap42 says:

    Heh. I’ve got a fixed rate loan from them, and it was only in the last couple months that they stopped badgering me to get a new ARM with a teaser rate.

  10. CompletionBackwards says:

    Well, as you may have heard.. No one can get away with what Countrywide can. Oh, wait..

  11. synergy says:

    Damn. I wish I had been an irresponsible individual and purchased a home above what I could afford.

  12. sleze69 says:

    @synergy: Me too. I just bought a house with a fixed rate mortgage. Maybe I should have gone the irresponsible route and got an ARM so that I could have the company bail me out later and refinance it for me.

  13. CompletionBackwards says:

    @forever_knight: The key term being “administer” I’m not sure how much of their own stockholder’s money they’re allowed to risk in this market or any.