The good news is we are not a Category 5 market. Countrywide has tightened credit at the worst possible time for perma-bulls. Hat tip to socketsite.com.
Bakersfield has been designated a Category 4 by Countrywide. What does this mean? It means credit has tightened even more than before. Most other formerly hot markets are now designated as Cat 5 or Cat 4. Here are the details:
For Countrywide Purchase Loans:
Soft Market Category 4-5 loans: Maximum financing will be reduced by 5%
Soft Market Category 1-3 loans: Maximum financing will be reduced by 5% if the appraisal or appraisal review indicates any of the following: Declining Market, Oversupply, Marketing time over 6 months.
For Countrywide Home Equity Loans:
Soft Market Category 5 loans: Maximum financing will be reduced by10%
Soft Market Category 4 loans: Maximum financing will be reduced by 5%
Soft Market Category 1-3 loans: Maximum financing will be reduced by 5% if
the appraisal or appraisal review indicates any of the following: Declining Market, Oversupply, Marketing time over 6 months.
CLICK HERE FOR THE COMPLETE LIST
5 comments:
Countrywide is still making loans?
LOL!!
My guess is this is B of A taking early control of Countrywide.
Crispy,
You'll find a bunch of 'hattips' to you around the blogsphere on this. This is a huge change. However, why do I think that 'maximum financing' must be reduced by more than 5%. A 5% hit isn't much.
Thanks for propagating this information.
Got popcorn?
Neil
Bakersfield is more an 8.2. what we've felt so far are precursor shocks. My cats have been antsy lately. That means either a sizable earthquake or a hedge fund is about to blow up. For Bakersfield i don't know how you all could tell the difference at this point. Seriously, does the general population have a clue about the C&C and tight lending ramifications?
BofA purchased Countrywide using 4billion of their stock and a golden parachute for the italian. they have temporarily salvaged the two billion dollar loan they made countrywide 3 months ago. Bet the stockholders of BofA are going to put the word "poison pill" back into their vocabulary soon...
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