From reader DJ
From a flyer from the local Countrywide rep in Cedar City, UT:
In recent weeks there has been a huge decline in product availability in the subprime field. All lenders are tightening their guidelines and providing less options…
As the number 1 lender in America, Countrywide is pleased to announce that we are still holding a competitive stance in a declining market. Where many other lenders are now unable to help homebuyers we are holding strong to our slogan of ‘Countrywide Can’.
Inquiring minds want to know, what is it Countrywide ‘can’ do? Continue making high risk loans to those barely able to pay even before the mortgage payment resets to something way beyond their ability to pay? Not a good business model, you ask me. Maybe they’re doubling down, perhaps they have so many loans going bad they figure they can get out of the mess by issuing more, even riskier loans?
Maybe they should just go to Las Vegas, where compulsive gamblers are welcomed with open arms.
Compulsive gamblers are welcome on Wal Street, too!