Diabolical mustache-twirling, evidence-forging, subprime mortgage lender Countrywide reassured investors that it had no plans to go bankrupt, despite the fact that loan fundings dropped 45% from last December, says Marketwatch. There is a bright side, of course, for those of you who haven’t yet given your money to Countrywide:
Financial institutions that have run into difficulties and need consumer deposits to fund loans and build up their capital levels. Countrywide and E*Trade Financial Corp. (ETFC), both of which have been hit hard by the credit crunch are offering some of the industry’s highest rates on products like certificates of deposit.
Egan Jones, a ratings company, wrote in a report on Tuesday that Countrywide is “severely challenged and might falter if it does not receive an infusion of at least $4 billion within the next couple of weeks.” It said funding is needed because of a 40% decline in mortgage originations at the savings-bank company and a shift away from formerly profitable subprime-mortgage loans.
Reacting to the bankruptcy rumors, Countrywide spokesman Rick Simon said, “There is no substance” to them “and we are not aware of any basis for the rumor that any of the major rating agencies are contemplating negative action relative to the company.”
So, if you’re seeking better interest rates, and are morally flexible about who you give your money too, look for companies that are in dire need of an infusion of cash. Who’s the predatory lender now? Don’t you feel cool?
Countrywide December loan fundings down 45% [Marketwatch]