Most of you have never heard worry in my voice. I like to think that I'm generally unflappable when faced with adversity. Countrywide is in trouble- that means we are in trouble. I knew it way back on April 1, 2007 and didn't think it would manifest itself until late 2008. I forgot that in the information age, bad news travels in nanoseconds. A crisis, which took 18-36 month two decades ago, is compressed into 18-36 days in the information age.
A Countrywide bankruptcy will be far reaching in its effect on the capital markets. Let me repeat that for you- A Countrywide bankruptcy will be far reaching in its effects on the capital markets.
Four Steps You Can Take Today To Protect a Disruption of Business:
1- Use mortgage brokers: ask them to lock with two distinctly different lenders- that means no conduits. If they don't know what conduits are, move on.
2- Pick originators who know what moves mortgage rates- see of they have access to live mortgage bond pricing. If the originator replies that the Fed moves rates or that treasury bonds move rates, or doesn't have access to live mortgage bond quotes, move on. Make those that claim they have access to live mortgage bond quotes prove it to you.
3- Focus on full documentation buyers. Insist on seeing DO findings from the mortgage broker if you represent a buyer or seller.
4- Develop an alternative financing plan for marginal borrowers. About twenty of you were introduced to this alternative financing plan last month in a live webinar. Those serious about learning more about this can e-mail me a request for a CD presentation of that plan. They'll be out next week.
This is a crisis. Your business doesn't have to suffer if you take action this week.
