Countrywide Can't Shake 'Come Hither' Ways

Marek Fuchs

In fighting the good fight to keep democracy safe for wealthy shareholders, we must understand that the enemy, working alone, is pretty harmless.

After all, those who come up with press releases and corporate party lines on issues, working in the world's (second) oldest profession, are mostly doing their jobs. But while they are getting paid to present a tuned or altered truth to the public, they make it easy to turn the business media callous to the underlying truth, which is why so much of what you end up hearing is nonsense.

These days, public- and investor-relations hacks have successfully ironed all spontaneity, texture and reality out of analyzing a company. Every presentation to the public is choreographed, with press releases going through more drafts than Tolstoy ever put a manuscript through.

And the systemized nature of the process makes it so easy to produce copy. The polished utterances, the camera-friendly interviews given to hand-selected journalists all make it easy to hit deadline without much critical thought.

And the split-the-difference, on-the-one-hand-on-the-other-hand form of the modern corporate media culture has given the dark arts of the public- and investor-relations forces too much credence. Play a game of on-the-one-hand-on-the-other-hand with a hustler, and you are that much closer to being hustled.

Now, in the name of truth, it's time to fight back. But I'll need your help. If you work for or with a company that comes out with a ridiculous, blowhardy, cloying claim in a press release or at a public conference of some sort, email me.

I want to make mischief and get at truth by setting these overly rehearsed claims, taken too often as fact by the business media, against the knowledge of the working rank and file. Public-relations officials against the workers and customers of their own companies, who will be granted anonymity. Let the chaos begin with Countrywide(CFC Quote):

The Party Line

The party line at Countrywide has been that it has found the religion of responsibility amid the recent trouble. It is no longer handing out loans to every mongrel who asks. As Angelo Mozilo said recently on CNBC, shortly after talking about the increasing rate of delinquencies and foreclosures, "Some of the loans that were made in that five-year period should not be made. Going forward I would acknowledge that, no question about it."

Better late than never, right? But here's where Amazing Reality Man rides to the possible rescue.

That interview was given on Aug. 23. But on Aug. 22, this little come-on went out to mortgage brokers, offering lenders some interesting (and familiar) terms. A mortgage broker sent it to Amazing Reality Man, who confirmed it with other mortgage brokers:

Sent: Wednesday, Aug. 22, 2007 1:27 p.m.
Subject: Countrywide Expanded Approval (EA) We can give you a 7.5% rate with rebate!!!

We can give your borrowers conventional financing with rates and costs that are far less than those offered by the Subprime market.

You can give your borrower a 7.5% - 30 year fixed loan with no prepay with 1.5% rebate!!!

Some of the highlights:
No Prepay Penalties, Ever
Up to 65 DTI available
100% Financing for Owner Occ 1 SFR
Standard fixed rate at no charge
2nd Home and Investment Available
No Title seasoning required
Non Arm's length Transactions Allowed (with some restrictions)
Source and Seasoned Down Payment but with very flexible guidelines.
Seasoning is determined by automated underwriting, DU.
No minimum Square footage
Cashout, Rate and Term
500 Minimum Credit Score
Fixed 15 or 30 year terms
Full Doc Only
BK seasoning is determined by file date not discharge date
Help your customers' Expanded Approval loan process get off to a fast start - submit the Detailed 1003 Application form available on cwbc.com and include the following in the loan file:

Application documentation

Completed 1003 and Good Faith Estimate (GFE)
Desktop Underwriting (DU) approval run
Income documentation
Pay stubs and W2s or tax returns
Social security income, annuity, pension income, child support, or alimony
Assets as required by DU approval
Verification of Deposit (VOD) or Bank Statements, 401k, etc.
Gift letter along with proof of deposit into borrowers account (if applicable)
Proof of Earnest Money - must have cancelled check to receive credit (if applicable)
Other documentation
Completed purchase contract
Title work
Homeowners insurance declaration

Challenge of the Party Line

Now in fairness, maybe Mr. Mozilo changed his mind overnight and decided to stop selling such loans. Who knows what a fitful night sleep can do to a soul. Or maybe he is not selling a lot of them anymore. There are other explanations -- although stated-income loans have gotten a deservedly bad rap, they are not all bad. The self-employed and others in particular situations might need them, but with that credit score?

Ugh.

Anyhow, I called Countrywide to get an explanation. I wanted to see precisely how many of the current loans are stated-income loans and how many are to people with lame credit scores. And I wondered whether that recent corporate line about finding religion when it came to lame loans is legit. And, well, I'm still waiting for a reply.

Countrywide does not seem to be talking much these days. It is always a source of concern when a public company decides to have some quiet time. If I had a shiny nickel for all its "no comments" lately, including a big one to The New York Times, which took a look into the crisis and were actually told that Countrywide spokesmen were too busy. I'm guessing they still are.

When I tried to bridge this gap between company line and competing evidence, Ginny Zoraster, who works in the communications office, told me that she sent my inquiries on to four officials. She did that three separate times.

Well, I'm still waiting here, and while I am, if you have evidence that a public company you know is not exactly heeding to the publicly stated line, pick up that red phone underneath the glass case and call Amazing Reality Man.

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