Thursday, August 16, 2007
Countrywide borrows $11.5B from 40 banks
NEW YORK (Reuters) - Countrywide Financial Corp. (CFC.N), the largest U.S. mortgage lender, said on Thursday it is drawing down an entire $11.5 billion credit facility to bolster its liquidity as a shortage of credit weighs on the mortgage industry.
The drawdown shows how strains of tighter liquidity have spread beyond subprime lenders to larger companies that made predominantly higher-quality loans.
A reporter on NPR last night described Countrywide as "on the verge of bankruptcy".
So if they go under do I still have to pay for my house?