Countywide has a problem

Countrywide has a problem... you think? Their foreclosure rate has doubled. I know for some of you this may come as a shock, for others that have them as your lender it makes perfect since.

Countrywide has it's problems, but as a whole they are typically very easy to work with and are very understanding. They have been one of our best lenders to work with. I know some of you have had some problems with them, but believe me they are nothing compared to the bad ones. They are going to have to do some serious soul searching to come up with a way to get out of this foreclosure mess. They will have to adjust how they handle them and allow people some leniency or they are in for some bad times.

This article posted by Reuter looks at the Countrywide problem.

"NEW YORK (Reuters) - Countrywide Financial Corp. the largest U.S. mortgage lender, said on Thursday the amount of mortgages in its portfolio that are in foreclosure nearly doubled, amid a difficult U.S. housing market.

The Calabasas, California-based company said the rate of pending foreclosures, as a percentage of unpaid principal balances, rose to 0.83 percent in March from 0.44 percent a year earlier and 0.80 percent in February.

Countrywide said the March foreclosure rate, measured by the number of loans serviced, was 0.69 percent, up from 0.47 percent a year earlier but down from February's 0.70 percent.

The delinquency rate rose to 4.29 percent in March from 3.68 percent a year earlier but fell from February's 4.71 percent. Countrywide's servicing portfolio grew 17 percent from a year earlier to $1.35 trillion.

Foreclosures are rising as housing price appreciation slows and lenders tighten their underwriting standards. This makes it more difficult for homeowners to refinance, especially those with loans whose rates are resetting higher.

Last month, the Mortgage Bankers Association said the foreclosure rate industry wide was 0.54 percent in the fourth quarter, the highest it had measured in 37 years of surveys.

Countrywide said it funded $43.28 billion of mortgage loans in March, up 5 percent from a year earlier. Adjustable-rate and "non-prime" fundings both fell 29 percent, to $14.68 billion and $2.36 billion, respectively.

From January to March, Countrywide said it funded $115 billion of mortgage loans, up 9 percent from a year earlier." Reuters