Real Estate Forums

San Diego Real Estate · 03-11-2008, 08:25 AM

Countrywide Financial Corp. is under the eye of the FBI

Yesterday CFC (NYSE) shares dropped 14 percent to a 13-year low on following reports that the largest U.S. mortgage lender was being investigated by the FBI for possible securities fraud.

This fall came even though BOA says the purchase of the troubled CFC transaction is still on track.

We have started to see tighting in our local San Diego market due to the troubled CFC.

I think this without a doubt is going to be another major hit to the entire Real Estate & Mortgage Industry.

coglethorpe · 03-11-2008, 12:11 PM

Quote:

Originally Posted by San Diego Real Estate

Countrywide Financial Corp. is under the eye of the FBI

I'm sure this will put pressure across the US market. Who will be the next to fall?

SEOWolf · 03-12-2008, 09:42 AM

Countrywide Financial Corp. will not be the last to take a hit over this and this is only the opening salvo of the FBI probe of Countrywide.

The current FBI criminal investigation of Countrywide deals with whether the home lender misled investors about its financial condition and the quality of its mortgages.

When I last met with the Local FBI Special Agent in charge of the REW Hacking investigation Countrywide came up in the conversation as a possible “predatory lender”. So obviously that shoe has yet to drop but will certainly be more bad news for Stock holders when it does.

Stay tuned.

~Mack

San Diego Real Estate · 03-13-2008, 09:55 AM

Latest news on the CFC - BAC deal...

With all the latest it is obvious that there is serious doubt in investors as they are piling onto the bet that the Countrywide (CFC)-Bank of America (BAC) deal will crack.

Countrywide plunged 14% in trading Monday to a 13-year low on reports the FBI is probing whether the mortgage lender misrepresented its condition in financial filings. The sell-off means that Countrywide shares are trading at a 32% discount to the value they would fetch should Bank of America complete its acquisition of Countrywide at the agreed-upon terms. The spread was just 9% two weeks ago, before the latest round of credit market stress sent financial stocks tumbling.

lasvegasrealestate4u · 03-14-2008, 03:31 AM

The concern about Predatory lending has already surfaced

From the Illinois Attorney General's office ---> Office of the Illinois Attorney General - MADIGAN ISSUES NEW SUBPOENAS TO COUNTRYWIDE AND WELLS FARGO

More specifically, read this investigation that began in 2004 --> http://www.illinoisattorneygeneral.g...o_reporter.pdf

Page 6 is pretty disturbing and I would think this is going to be pretty hard to explain.

What I found really interesting was page 4 when you consider that Chicago really did not have a big increase in prices in the past 4 years compared to areas like... Las Vegas, Arizona, Florida, California.