My Thoughts on CFC's Operating Results for March 07

So Countrywide is up to its game again. This time their lies won't work. They report that their loan funding percentage was up 5% over last year. This was due to increasing volume of refinances and fixed rate loans. They claim that their subprime loans declined by 29 percent to $2.4 billion.

They also claim that on consolidated basis, it funded $3.5 billion in pay-option loans during the month as compard to $8.8 billion in March 2006. They tried to stress that their pay option loans have a fixed rate for 5 years which totaled $1.3 billion. What about the remainder of the $2 billion? I thought they thought ALT-A was not exposed to subprime risk, if so, why are they going out of their way to seem as if their ALT-A loans were declining AND that the rates are fixed for 5 years on 33% of their pay option ARMS? What about the 67% that are not?

Read between the lines of mortgage loan servicing portfolio growth to $1.4 trillion. More loans for them to be exposed to in their ever increasing foreclosures and loan defaults. What about a comment here on that? On the surface that might sound good but no one seems to be buying that. That their foreclosure rate is increasing 100% is not a good thing.

The smoke and mirrors continues. In a fashion eerily similar to AHM before releasing their earnings warning, CFC is trying to do damage control at this point and true to form, they are not exactly forthcoming. Meanwhile, Mozilo continues his selling true to form.