Comments on: False Prophets of Housing: Making Sense of Housing Information Last Week. BofA buying Countrywide Deal. http://www.doctorhousingbubble.com/false-prophets-of-housing-making-sense-of-housing-information-last-week-bofa-buying-countrywide-deal/ How I Learned to Love Southern California and Forget the Housing Bubble Sat, 30 Aug 2008 05:58:08 +0000 http://wordpress.org/?v=2.2.2 By: MafiaDon http://www.doctorhousingbubble.com/false-prophets-of-housing-making-sense-of-housing-information-last-week-bofa-buying-countrywide-deal/#comment-5859 MafiaDon Tue, 15 Jan 2008 18:50:07 +0000 http://www.doctorhousingbubble.com/false-prophets-of-housing-making-sense-of-housing-information-last-week-bofa-buying-countrywide-deal/#comment-5859 Hi Doc, In my humble opinion (which is worth about one cent), BofA purchased a lion's share of the subprime market at firesale prices. Basically they stole it. BofA is financially strong considering they avoided the subprime market like the plague. I'm sure BofA is expecting a large percentage of the subprime portfolio to go the route of forclosure. They are probably betting on the remaining subprime loans to produce a significant profit in the long term. The percentage of subprime loans that don't default will most likely be prime customers that were steered into subprime loans by Countrywide. Eventhough BofA is a respectible bank, they are still a bank. In my experience BofA has one of the worst collections practices of all the "respectible" banks. Citibank comes in a close second. Ironically, Citibank is in hotwater as well by posting a $10 bill write-off this morning... Thanks and keep up the good work Doc. Hi Doc,

In my humble opinion (which is worth about one cent), BofA purchased a lion’s share of the subprime market at firesale prices. Basically they stole it. BofA is financially strong considering they avoided the subprime market like the plague. I’m sure BofA is expecting a large percentage of the subprime portfolio to go the route of forclosure. They are probably betting on the remaining subprime loans to produce a significant profit in the long term. The percentage of subprime loans that don’t default will most likely be prime customers that were steered into subprime loans by Countrywide.

Eventhough BofA is a respectible bank, they are still a bank. In my experience BofA has one of the worst collections practices of all the “respectible” banks. Citibank comes in a close second. Ironically, Citibank is in hotwater as well by posting a $10 bill write-off this morning…

Thanks and keep up the good work Doc.

]]> By: SoCalWatcher http://www.doctorhousingbubble.com/false-prophets-of-housing-making-sense-of-housing-information-last-week-bofa-buying-countrywide-deal/#comment-5858 SoCalWatcher Tue, 15 Jan 2008 18:46:13 +0000 http://www.doctorhousingbubble.com/false-prophets-of-housing-making-sense-of-housing-information-last-week-bofa-buying-countrywide-deal/#comment-5858 Buck, People drive cars worth much less than their note because that is what gets them around. For the few people who bought a home during the bubble years with full intention of calling it a home and not an investment or cash machine, then they will hold on to it if they can indeed afford it. There are many people with top tier credit that will ride the storm to protect their credit than fold hand walk away. The ones that are walking away are the gamblers or ones that got caught up the frenzy. Buck,

People drive cars worth much less than their note because that is what gets them around. For the few people who bought a home during the bubble years with full intention of calling it a home and not an investment or cash machine, then they will hold on to it if they can indeed afford it. There are many people with top tier credit that will ride the storm to protect their credit than fold hand walk away. The ones that are walking away are the gamblers or ones that got caught up the frenzy.

]]> By: AnnScott http://www.doctorhousingbubble.com/false-prophets-of-housing-making-sense-of-housing-information-last-week-bofa-buying-countrywide-deal/#comment-5855 AnnScott Tue, 15 Jan 2008 15:54:18 +0000 http://www.doctorhousingbubble.com/false-prophets-of-housing-making-sense-of-housing-information-last-week-bofa-buying-countrywide-deal/#comment-5855 Hey Doc- Need some info on the BOA chart that you have in the post. When was that done? Where is it published? Is that just Countrywide's loans or is it all subprime loans? What does the designation 'near-prime' include? Option-ARMs - in which case it looks very low? I need to be able to give a cite to the local newpaper that is preparing a 4-5 part series on the martgage-credit crash - and to explain to them whichtypes of loans are included in which groups. Usually option and hybrid options are not included in subprime. Thanks Hey Doc-

Need some info on the BOA chart that you have in the post. When was that done? Where is it published? Is that just Countrywide’s loans or is it all subprime loans? What does the designation ‘near-prime’ include? Option-ARMs - in which case it looks very low? I need to be able to give a cite to the local newpaper that is preparing a 4-5 part series on the martgage-credit crash - and to explain to them whichtypes of loans are included in which groups. Usually option and hybrid options are not included in subprime.

Thanks

]]> By: din819go http://www.doctorhousingbubble.com/false-prophets-of-housing-making-sense-of-housing-information-last-week-bofa-buying-countrywide-deal/#comment-5851 din819go Tue, 15 Jan 2008 11:14:09 +0000 http://www.doctorhousingbubble.com/false-prophets-of-housing-making-sense-of-housing-information-last-week-bofa-buying-countrywide-deal/#comment-5851 My hope is there is a deal with the feds and US government about the types and quality of loans B of A takes. They have done this before -- leaving the bad stuff with the feds and taking only the good. We will see. It will not be good for the Countrywide employees. They have been told all along that everything is good. I hope the Countrywide CEO has to "donate" all of his severance to a fund set up for the countrywide employees (and B of A) is this does not work. He does not deserve one dime. My hope is there is a deal with the feds and US government about the types and quality of loans B of A takes. They have done this before — leaving the bad stuff with the feds and taking only the good. We will see. It will not be good for the Countrywide employees. They have been told all along that everything is good. I hope the Countrywide CEO has to “donate” all of his severance to a fund set up for the countrywide employees (and B of A) is this does not work. He does not deserve one dime.

]]> By: madmexican http://www.doctorhousingbubble.com/false-prophets-of-housing-making-sense-of-housing-information-last-week-bofa-buying-countrywide-deal/#comment-5838 madmexican Tue, 15 Jan 2008 06:23:31 +0000 http://www.doctorhousingbubble.com/false-prophets-of-housing-making-sense-of-housing-information-last-week-bofa-buying-countrywide-deal/#comment-5838 Dr. Housing Bubble, You do a great job telling it like it is. B of A will only look after itself and end up letting go massive amounts of people, which will only cause more foreclosures and longer unemployment lines. It happens everytime business merge. For all those non believers think this housing "slump" only affects the real estate business, take a look at this post http://www.presstelegram.com/ci_7963566 If you think the aerospace indusrty pull out of the late e80's and early 90's caused the last So Cal housing bust, just wait and see what happens in the next two years. We'll be wishing we were in the early 90's. Dr. Housing Bubble, You do a great job telling it like it is. B of A will only look after itself and end up letting go massive amounts of people, which will only cause more foreclosures and longer unemployment lines. It happens everytime business merge. For all those non believers think this housing “slump” only affects the real estate business, take a look at this post
http://www.presstelegram.com/ci_7963566
If you think the aerospace indusrty pull out of the late e80’s and early 90’s caused the last So Cal housing bust, just wait and see what happens in the next two years. We’ll be wishing we were in the early 90’s.

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