perhaps Countrywide should have looked at lending standards when the company had a chance. Instead, foreclosure rates have doubled at Countrywide. In addition to becoming a cash flow problem, issues such as tax liability and carrying costs now concern Countrywide. Lawsuits are sure to follow. In the discovery phase some analysts predict a startling similarity between what was commonly acceptable and previous allegations against Household International and Ameriquest.
Those allegations focused on predatory lending. Did subprime become predatory? Were abuses overlooked as production and commissions increased? Or was the main focus on selling collateralized debt obligations? Those and many other questions remain unanswered. For now Countrywide is trying to forecast how bad foreclosures will be.
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This article, Countrywide foreclosures – subprime or predatory?, is just one of our articles from our Mortgage Crisis Daily
The Subprime Mortgage Crisis Before, During, and After
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