Biggest lender Countrywide Financial worrys about their existenc

Shares of Countrywide Financial Corp. plunged in premarket trading Friday after the nation’s biggest mortgage lender issued a bleak assessment of the home lending industry.

The Calabasas, Calif.-based lender in a filing with the Securities and Exchange Commission Thursday cited “unprecedented disruption” in the trading markets where mortgage lenders raise money.

Investors who buy their bonds from packaged loan pools packages aren’t buying.

Rather than dump them for low prices, Countrywide is keeping them in portfolio.

Consumer credit quality of prime borrowers is deterioating rapidly.

They are unclear how this will impact the viability of their company, even though they have a large cash reserve.

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• I loaded PUT last friday. Since its PUT is too expensive, -pediatrician2- ♂ (203 bytes) () 08/13/2007 postreply 09:45:45

• CFC will get bailed out, period. -Aceofspades- ♀ (0 bytes) () 08/13/2007 postreply 09:51:14

• government will not bail out an individual mortgage company. -pediatrician2- ♂ (65 bytes) () 08/13/2007 postreply 09:53:21