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?


Fritz said...

Even scarier, can they "lose" your house during the bankruptcy?

John said...

They could sell it off to another bank or auctioned off. The terms of your mortgage will remain the same, your checks just go somewhere else.

This has actually happened before with several mortgage companies. You won't lose your house.

John said...

^ - Yeah thats me Jarhead, couldn't log out of googletalk due to a great conversation.

OkieRover said...

I didn't think they'd loose my house. I was hoping they would loose my mortgage. Or my payments would get returned. Yeah.