When the subprime crisis exploded, the U.S. largest mortgage lender, Countrywide Financial Corp was perhaps the most talked about company after Merrill Lynch analyst ticked off the possibility of a bankruptcy. And now The Securities and Exchange Commission is investigating the obvious insider-trading when Countrywide CEO Angelo R. Mozilo sold some $130 million in Countrywide stock in the first half of the year through a prearranged 10b5-1 trading plan.
Meanwhile, with the recent rate cut people are depending on the internet to find cheap loans after learnt their lessons (or did they?) All of a sudden the net was filled with companies that offer various types of loans, not something you should be surprised of considering the bulk of you money could be for the loans payment. DM Loans for example do not only provide cheap loans but secured loans, meaning the loans are secured because your home is used as collateral against the homeowner. This is a traditional but smarter way of reducing the risk to the lender, though it was ignored most of the time during the housing boom.
As saving is not the forte of most American as they prefer to spend, little wonder that most of them have multiple types of debts. And that’s how debt consolidation loans come into the market to adjust the liabilities. Depending on your credit history and overall credit rating, you might end up with different terms from the lending agencies. And you can be sure of other lending companies improve revenue canabalizing from Countrywide’s own problem.
|
|
October 18th, 2007 by financetwitter
|
|
|
|
|
|
|
Comments
Add your comment now.
Leave a Reply