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Strategies & Market Trends : Anthony@Pacific & TRUTHSEEKER Expose Crims & Scammers!!!

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From: ravenseye	10/27/2007 10:30:24 PM
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By Alan Fein (AXcess News) New York - Just a few weeks ago Countrywide's (NYSE: CFC) chairman was being lauded over like a hero after Bank of America (NYSE: BAC) injected billions in equity capital. Then came the SEC probe into insider trading. Now, Countrywide is again the darling of the press after it said it would refinance as much as $16 billion in subprime loans before they go into foreclosure. So just who's bailout is it anyway? Countrywide had grown into the nation's largest mortgage lender over the last couple of years and did it on the backs of securitized mortgage paper investors globally who now want someone's head on the chopping block over the billions in losses major banks worldwide are faced with after investing. To thwart a total collapse of the mortgage lender, the bottom-fishing lender says it's going to offer to refinance those underlying loans saying that before the rates were reset (increased) the borrowers qualified. Now stay with me here; The Federal Reserve lowered interest rates a half-point, the economy is still no better for it - and both Fed Chairman Ben Bernanke and Treasury Secretary Henry Paulson have both said the credit crisis brought about from the collapse of the subprime mortgage industry is going to hang over the economy for some time to come, like the smoke over California's coastline this morning. The likelihood that the Fed will cut rates is quite high and in fact, they may provide another half-point rate cut, which would mean refinancing the billions in subprime loans at new, lower rates - of course taking advantage of FHA loan guarantees - would make Countrywide look like a hero and save at least the majority of the billions in now-junk mortgage bonds equity from going bust. Hey, everybody wins! [insert White House credit for the 'rescue' here] Countrywide's David Sambol said, "Countrywide believes that none of our subprime borrowers that have demonstrated the ability to make payments should lose their home to foreclosure solely as a result of a rate reset." What Countrywide's President didn't say was if it were going to call back to work some of the 15,000 employees whose jobs the lender cut after the subprime mortgage business dried up and disappeared.... axcessnews.com

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