GLG News Analyses of the following article:

Countrywide profits fall 33%

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Published at: www.inman.com

Mortgage Company Woes

August 1, 2007

Analysis by: GLG Expert Contributor

The mortgage industry as a whole has been suffering ever since the downward spiral of the housing market. A lot of mortgage companies have closed up shop....ie....Fremont, New Century and others have had significant layoffs....ie.....Citibank. Fortunately, for Countrywide their business is continueing to grow. They haven't come out with their new numbers, but they just overtook Wells Fargo as #1 in the mortgage industry. In the next few months, you'll start seeing their commercials for it. Also, in the Montgomery County, PA area they are opening up a HUGE new call center w/ incoming calls ONLY. They are going into a building that accomodates 1000's of people. This is going to be huge for the company itself and generate a lot of new business. When the call center is up and running, you'll see Countrywide breakaway from all the other competition.

Pride Go Before The Fall

July 30, 2007

Analysis by: GLG Expert Contributor

Countrywide's heavy reliance on its underwriting programs and steady appetite for Pay-Option ARM's has created havoc for its portfolio management team. Countrywide's belief that it was smarter than the Mortgage Industry has led to this situation, and we have only begun to see the impact.

Subprime Woes

July 25, 2007

Analysis by: GLG Expert Contributor

In Monterey County, California, the subprime market has evaporated for the most part.  Consequently, home prices on the lower end of the market have experienced a dramatic decline of between 15% to 30% depending upon the location of the property.  The number of bank owned properties has risen over the past several months.  In the beginning of the housing correction, most of the foreclosures consisted of fixer uppers.  Recently, this has changed.  We are seeing properties that are in good condition being foreclosed upon.  I would classify these properties as more middle tier properties in the $600,000 range.  In my opinion, the next 12 to 24 months, the subprime market will continue to worsen with an increasing number of foreclosures and eventually bank owned properties occurring.  Many of the owners of these properties do not have adequate incomes to refinance at the current interest.  It may take several years for this segment of the market to stabilize.  

Mark MariottiChief Executive OfficerFuture Management Holdings Inc

Long overdue...

July 25, 2007

[FULL DISCLOSURE: MR MARIOTTI IS NOT CURRENTLY (BUT HAS BEEN IN THE PAST) ENGAGED BY CFC] 1) On or about January of 2003 our financial systems firm was solicited by the major real estate financial services firms to increase automation for compliance, predatory lending and loss mitigation. 2) Finally today... the actual real estate investors are reeling from the foreclosures.

Countrywide Problems

July 25, 2007

Analysis by: GLG Expert Contributor

1) I have had personal experience where Countrywide turned down a loan but another company accepted it and then transferred it to Countryside. 2) Countryside is accepting more doubtful loans than it should. 3) There are now more foreclosures appearing and Countrywide should be more choosy rather than trying to buy up all other loans, which may not end up profitable.