As with many other areas of finance, it can be especially hard to get a home loan when you are currently under the grasp of bad credit. Even if the credit mishap that you were involved in was not your fault, you may still be pinned with bad credit, making it excedingly hard to get a number of types of loans. But mark my words, it is still possible to get a bad credit home loan with some lenders. These lenders know that it can be tough to be given a bad rap and may therefore give you a bad credit home loan. Your bad credit home loan should be generally the same as any other home loan that you could otherwise get, and will allow you to draw funds to spend on the jobs around the house you've been meaning to do but couldn't fund.
You can be given a bad credit home loan with no questions asked. There are many people who are looking around for bad credit home loans, and the internet is the perfect place for you to find the bad credit home loan that you're looking for. It's very simple to browse home loan sites that are allowing bad credit home loans, and not only that, but browse their competitors too so as you can get an idea of which will be the lowest cost for you to apply for and repay. Don't let a little run in with bad credit keep you from the bad credit home loan that you've been looking for.
Bank of USA Home Loans is a diversified business marketing and service holding company engaged primarily in residential mortgage banking and attendant businesses. It is a wholly owned supplementary of Bank of America. It formerly conducted playing as Countrywide Financial, but the name was changed on April 27, 2009.Bank of USA Home Loans is composed of:
* Mortgage Banking, which originates purchases, securitizes, and services
mortgages. In 2006 Countrywide financed 20% of every mortgages in the United
States, at a value of about 3.5% of United States GDP, a proportion greater
than any another single mortgage lender.
During the year ended December 31, 2005, for example, the Mortgage Banking portion generated 59% of the company's pre-tax earnings.
On January 11, 2008, Bank of USA declared that it designed to purchase Countrywide
Financial for $4.1 1000000000 in stock. On June 5, 2008, Bank of USA Corporation
declared it had customary support from the Board of Governors of the agent
Reserve System to purchase Countrywide Financial Corporation. Then, on June
25, 2008, Countrywide declared it had customary the support of 69% of its shareholders
to designed merger with Bank of America. On July 1, 2008, Bank of USA Corporation
completed its purchase of Countrywide Financial Corporation. In 1997, Countrywide
had spun soured Countrywide Mortgage Investment as an independent company titled
IndyMac Bank. agent regulators seized IndyMac on July 11, 2008, after a
week-long bank run.
* 1 Finances
Home Loans Finances
For year-ending Dec 31, 2005, amounts in thousands of dollars:
* Total Assets: $235,085,370
Home Loans 2006
For year-ending Dec 31, 2006, amounts in thousands of dollars:
* Total Assets: $85,946,230
In its 2006 annual report to the SEC, CFC disclosed that 19% of its subprime
loans were delinquent.
For year-ending Dec 31, 2007, amounts in thousands of dollars:
* Total Assets: $211,730,061
Home Loans History
Countrywide was founded in 1969 by David S. Loeb and Angelo Mozilo. Loeb died in 2003.The initial open substance was less than successful, with company have trading over the furniture at less than $1 per share. In 1985 Countrywide have was re-listed on the New York Stock Exchange low the ticker symbol CFC.
Countrywide's have has been described as the \"23,000% stock\" by
Fortune magazine. Between 1982 and 2003, Countrywide delivered investors a
23,000.0% return, exceeding the returns of pedagogue Mutual, Wal-Mart, and
Warren Buffett's Berkshire Hathaway.
The Mortgage Banking portion produces mortgage loans finished a variety of channels on a domestic scale. Nearly every of the mortgage loans the company produces in this portion are oversubscribed into the secondary market, primarily in the form of mortgage-backed securities. In 2006, 45% of those mortgages were customary non-conforming loans, loans too large to delude to Fannie Mae. The company generally performs the ongoing servicing functions attendant to the mortgage loans that it produces. It also provides various give approaching services, such as title, escrow and appraisal.
The Mortgage Banking portion consists of three distinct sectors: Loan Production,
Loan servicing and Loan Closing Services.
The persona of Loan Production is to uprise and fund newborn loans, and to acquire already-funded loans finished purchases from another lenders. Loan Production produces mortgage loans finished four divisions of Countrywide Home Loans: Consumer Markets, Full Spectrum Lending, Wholesale Lending and Correspondent Lending.
Consumer Markets and Full Spectrum Lending offer loans directly to consumers. Loans produced by these digit retail sectionalization are originated, funded, and oversubscribed by Countrywide. Consumer Markets offers a wide variety of products, whereas Full Spectrum Lending focuses primarily on products appropriate for customers with less than prime-quality credit.
Wholesale Lending offers loans to consumers whose loans are originated by another mortgage broker. These loans are funded and oversubscribed by Countrywide, but originated by another lenders.
Correspondent Lending purchases mortgage loans from another lenders, which
include mortgage bankers, advertizement banks, savings and give associations,
home builders and assign unions. These loans haw be oversubscribed by Countrywide
to end-investors on the secondary market, but are originated and funded by
Loan servicing services loans, i.e., collects payments from the borrower, handles escrow accounts, set and/or shelter payments (if applicable), then remits \"advances\" to the investor's trustee as specified in the Pooling and Servicing Agreement (PSA).
Loan servicing typically retains a fraction of the payment made (typically 25 - 45 foundation points of the unpaid principal balance) as a \"servicing fee\".
Loan servicing also generates income in the form of interest on monies customary
and held prior to paying scheduled advances to the trustee, fees charged for
late payments, force-placed insurance, document requests, jural fees, payment
LandSafe and its subsidiaries offer give approaching services, including real
realty appraisal services, automated assign reporting products, flood determination
services and residential title services for the six field counties of Southern
The Banking portion consisted of Countrywide Bank, FSB and Countrywide Warehouse Lending. Formerly, the bank was known as Countrywide Bank, N.A., a nationally chartered bank that was regulated together by the Office of the Comptroller of the Currency and the agent Reserve, but it converted its charter to a federally chartered thrift that is regulated by the Office of Thrift Supervision. Countrywide Bank is the 3rd largest Savings and Loan institution and is the fastest growing bank in United States history. Assets from deposits are currently approaching $125 billion.
Countrywide Bank primarily originates and purchases mortgage loans and home equity lines of assign for assets purposes. The majority of these loans are sourced finished its mortgage banking subsidiary, Countrywide Home Loans. The Bank obtains retail deposits, primarily certificates of deposit, finished the Internet, call centers and more than 200 business centers, many of which were located in Countrywide Home Loans' retail branch offices as of April 1, 2007.
Countrywide Warehouse Lending provides depot lines of assign to mortgage bankers,
who use these assets to uprise loans. These mortgage bankers are primarily
customers of Countrywide Home Loans' Correspondent Lending sectionalization
and the Capital Markets divisions; the mortgage bankers use depot lines of
assign from Countrywide Warehouse Lending to help uprise loans, then delude
those loans to Countrywide finished Correspondent Lending or Capital Markets.
The Capital Markets portion primarily operates as a registered securities broker dealer, a residential mortgage give manager and a advertizement mortgage give originator. CFC also operates broker dealers in Japan and the United Kingdom, an introducing broker dealer of futures contracts, an asset manager and a broker of mortgage servicing rights. With the exception of its advertizement mortgage activities, the company transacts only with institutionalised customers, such as banks, another installation institutions, shelter companies, asset managers, mutual funds, pension plans, another broker dealers and governmental agencies. Customers of its advertizement real realty finance playing are the owners or sponsors of advertizement properties, who can be individuals or institutions.
Countrywide Asset Management Corporation manages the acquisition and disposition of loans from third parties, as well as loans originated by Countrywide Home Loans, on behalf of Countrywide Home Loans. These are typically negligent or otherwise illiquid residential mortgage loans, which have primarily been originated low agent Housing Administration (FHA) and Veterans Administration (VA) programs. The Company attempts to rehabilitate the loans, using the servicing dealings of Countrywide Home Loans, with the aim to securitize those loans that become eligible for securitization. The remaining loans are serviced finished foreclosure and liquidation, which includes the collection of polity shelter and indorse proceeds relating to defaulted bureau and VA program loans.
Securities trading activities include the trading of debt securities in the
secondary mart after the original issuance of the security. Underwriting activities
encompass the assumption of the venture of purchase a newborn issue of securities
from the issuer and reselling the securities to investors, either directly
or finished dealers. Capital Markets primarily underwrites mortgage-related
The Insurance portion activities include substance property, casualty, chronicle and assign shelter as an underwriter and as an shelter agency, and providing reinsurance programme to primary mortgage insurers, finished digit playing units: Balboa Life and Casualty Operations, and Balboa Reinsurance Company.
Balboa Life and Casualty Group underwrite property, casualty, chronicle and assign shelter in every 50 states finished the Balboa Life and Casualty Group. Its products include Lender-Placed Property and Auto, which includes lender-placed auto shelter and lender-placed, real-property hazard insurance; Voluntary Homeowners and Auto, which underwrites retail homeowners shelter and home warranty plans for consumers, and Life and Credit, which underwrites term life, assign chronicle and assign impairment shelter products.
Balboa Reinsurance Company provides a mezzanine place of reinsurance programme
for losses between minimum and maximum specified amounts to the shelter companies
that provide private mortgage shelter (PMI) on loans in its servicing portfolio.
It provides this programme with respect to substantially every of the loans
in the Company's portfolio that are covered by PMI, which generally includes
every customary loans with an original give amount in excess of 80% of the
property's appraised value. In return for providing this coverage, it earns
a portion of the PMI premiums.
The primary activities of the Global Operations portion was Global Home Loans (GHL): a UK third party administrator (TPA) formed discover of a joint venture between Countrywide and Woolwich plc in 1998. Activities included Loan Processing and Subservicing, providing mortgage give application processing and mortgage give subservicing in the United Kingdom.
Following the acquisition of Woolwich by Barclays plc, this relationship developed further, with GHL feat the Barclays mortgage portfolio, finished a transfer of ownership of the Barclays mortgage activeness in Leeds to GHL in 2003.
By 2005, GHL activeness processed more than 11.3 1000000000 pounds superior ($20.3 billion) in loans, every of which are subserviced for Barclays, PLC, the joint venture partner. As of December 31, 2005, Global's subservicing portfolio was 59 1000000000 pounds superior ($102 billion).
In November 2005, Barclays declared that it intended to terminate the third party administration composing with GHL and bring the mortgage originations and servicing dealings backwards in-house. This resulted in Countrywide purchase discover Barclays' remaining 30% wager in GHL. Barclays brought the activeness backwards in-house in Feb 2006.
Since then Global's presence in the UK has been confined to providing support to Barclays and Prudential Assurance, who move to use the proprietary originations, servicing and arrears processing systems developed for GHL and Countrywide by Countrywide Technology Group (CWTG).
A second venture in the UK, Valuation Services, provided one of the first electronic residential property valuation services to third parties in the United Kingdom finished a majority-owned joint venture. This was oversubscribed to First American in 2007.
Offshore Services commenced dealings in India in 2004. Set up to exploit the
strategic advantage of employing systems specialists based in the sub-continent,
it provides playing process and technology services to the Parent Company and
its subsidiaries in both the United States and the United Kingdom.
* Angelo R. Mozilo, cofounder, chairman of the board, honcho honcho officer
Home Loans Bank of USA Home Loans Management
* Barbara J. Desoer, President of Bank of USA Home Loans and Insurance
Home Loans Controversies
In 2003, Countrywide was the subject of a class-action causa alleging period violations. Countrywide was charged with working employees 10–15 hours per day, 6 to 7 life per week without compensating them for period wages. The causa was settled in May 2005, with the payment of $30 million in compensation to 400 account executives. Additionally, Countrywide is one of many companies that conducts in-depth background searches of newborn employee applicants. The background see goes beyond typical employment, education, and criminal history searches, and enables a company to view the applicant's credit, and open record documents such as lawsuits and divorce records. Although it must be authorized by the applicant, Countrywide explicitly does not study applicants who deny dominance for a search. This contract has led to otherwise qualified individual complaints and dispute filings which claim this contract is discriminatory, invasive, and compromises the applicant's privacy.
Countrywide maintains a contract of not filing the legally required Internal
Revenue Service Form 1099 to independent brokers. The validity of this
is questionable however.
Countrywide agreed to a deciding with New York land attorney general Elliot Spitzer to compensate black and Hispanic borrowers improperly steered by Countrywide salespeople to higher-cost loans. The company also agreed to improve training and fault of its give officers and to pay New York land $200,000 to cover costs of the investigation.
Countrywide subprime documents show a contract of lending to families with as little as $1000 of disposable income, often compromising their knowledge to pay living expenses. This guideline was not established by Countrywide, but kinda the investors to whom they oversubscribed their loans. However Countrywide had no qualms in following finished despite it knowing those families would likely modify to make monthly payments: these loans would be oversubscribed to investors shortly after anyway. Employees were given scripts as a income assistance when talking to customers about taking discover loans.
Economist Stan Liebowitz writes that the Fannie Mae Foundation singled discover
Countrywide Financial as a \"paragon\" of a nondiscriminatory pledgee
who entireness with community activists, following \"the most flexible
underwriting criteria permitted.\" The honcho honcho of Countrywide is
said to have \"bragged\" that in order to approve eld applications,
\"lenders have had to stretch the rules a bit.\" Countrywide's commitment
to low-income loans had grown to $600 1000000000 by early 2003.
Some customers have complained that after the devastating hurricanes Katrina
and Rita, Countrywide told give customers in the affected areas that they could
take a break on payments without any late fees, and the payments would be added
backwards to the end of the loan. They now contend that Countrywide forced
the give customers to pay the missed payments in a lump sum, along with late
fees they were told they didn't have to pay, within 30 life or face foreclosure.
In June 2008 Conde cartoonist Portfolio reported that numerous Washington, DC politicians over recent years had customary mortgage financing at noncompetitive rates because the corporation considered the officeholders \"FOA's\"—\"Friends of Angelo\". The politicians extended such favorable financing included the chairman of the Senate Banking Committee, Christopher Dodd, the chairman of the Senate Budget Committee, Kent Conrad, and then United States Senator of Illionis, now President of the United States Barack Obama. The article also noted Countrywide's political action committee had made large donations to Dodd's campaign.Senator Dodd proposed that the federal polity acquire up to $400 Billion in defaulted mortgages. Citizens for Responsibility and Ethics in pedagogue (CREW) has titled for House and Senate to investigate Senators Conrad and Dodd.
It was reported that James Johnson, past CEO of Fannie Mae and an adviser to presidential candidate Barack Obama, had customary loans low the \"Friends of Angelo\". Johnson declared he would step down from the vice-presidential vetting position on June 11, 2008 in order to avoid being a distraction to Obama's campaign.
In June 2008 The Wall Street Journal reported that Franklin Raines, a past
CEO of Fannie Mae, customary below mart rates loans at Countrywide Financial
because the corporation considered the officeholders \"FOA's\"—\"Friends
of Angelo\" (Countrywide Chief Executive Angelo Mozilo). He customary
loans for over $3 million while CEO of Fannie Mae. On July 16, 2008, The
pedagogue Post reported that Franklin Raines had \"taken calls from Barack
Obama's presidential crusade seeking his advice on mortgage and housing contract
matters.\"Subsequent attempts to connect Obama's crusade with Franklin
Raines were characterized by The pedagogue Post as \"a stretch\".
The office of Attorney General of Illinois, Lisa Madigan, filed a civil causa in Cook County Circuit Court against Countrywide Financial Corporation on June 25, 2008. The causa cites information gathered from documents obtained via a writ in the fall of 2007. Madigan's office claims the \"mortgage pledgee engaged in \"unfair and deceptive\" practices to get homeowners to apply for venturous mortgages far beyond their means.\"
California Attorney General, Jerry Brown, followed meet by filing a kindred causa on June 25, 2008, accusing the pledgee of breaking the state's laws against false advertising and unfair playing practices. The causa also claims the defendant take many consumers by misinforming them about the workings of certain mortgages such adjustable-rate mortgages, interest-only loans, low-documentation loans and home-equity loans while telling borrowers they would be able to refinance before the interest rate on their loans adjusted.
In August 2008, Connecticut Attorney General Richard Blumenthal also brought meet against Countrywide, alleging that deceptive lending practices had ripped soured Connecticut homeowners.
The meet was settled in Oct 2008 after Bank of USA acquired Countrywide. The
deciding involves the modifying of troubled 'predatory loans' up to $8.4 1000000000
dollars. The states currently involved in the deciding are Arizona, California,
Connecticut, Florida, Iowa, Michigan, North Carolina, Ohio, Texas, and Washington.
Other states haw also join the settlement.
When Countrywide finances mortgage loans, they usually package them for sale to large investors as mortgage-backed securities. Fannie Mae or Freddie Mac can only acquire loans which conform to the standards of polity sponsored enterprises. Non-conforming mortgages securities must be oversubscribed in the private, secondary mart to alternative investors. On August 3, 2007, this secondary mart essentially stopped trading most of the non-conforming securities. Secondary mortgage mart disruptions had happened previously, but, the newborn flutter appeared more serious, both large in range and likely duration. Alt-A mortgages (loans given to apparently trusty borrowers without such or any documentation) completely stopped at ratings lower than AAA. Difficulties extended to such of AAA-rated mortgage-backed securities. Only securities with conforming mortgages were trading. Countrywide Financial issued a statement that its mortgage playing has access to a nearly $50 1000000000 resource cushion.
After the collapse of American Home Mortgage on August 6, attention returned to Countrywide Financial which at the instance had issued about 17% of every mortgages in the United States. Only life later Countrywide Financial disclosed to the U.S. Securities and Exchange Commission (SEC) that these disruptions in the secondary mortgage markets could hurt it financially:
\"Since the company is highly dependent on the availability of assign to finance its operations, disruptions in the debt markets or a reduction in our assign ratings could have an adverse impact on our earnings and business condition, particularly in the short term… Current conditions in the debt markets include low liquidity and increased assign venture premiums for certain mart participants. These conditions, which increase the cost and reduce the availability of debt, haw move or worsen in the future…. There can be no assurance, however, that the Company will be successful in these efforts, that such facilities will be adequate or that the cost of debt will earmark us to operate at profitable levels.\"
This raised reflection that Countrywide was a potential bankruptcy risk. On August 10, a separate on the bank began as the secondary mortgage mart shut down, curtailing newborn mortgage funding.
The perceived venture of Countrywide bonds rose. Fitch, Moody's and Standard
and Poors assign ratings agencies downgraded Countrywide 1 or 2 grades, some
to nearby fling status. The cost of insuring its bonds rose 22% overnight.
This also restricted its access to short-term debt titled advertizement paper.
This is often cheaper than bank loans. Some institutionalised investors admitted
trying to delude Countrywide paper. Fifty another mortgage lenders had
already filed for Chapter 11 bankruptcy, and Countrywide Financial was cited
as a possible bankruptcy venture by Merrill Lynch and others on August 15.
This combined with programme that its knowledge to issue newborn advertizement
paper might be seriously hampered place severe pressure on the stock. Its shares
fell $3.17 to $21.29, which was its biggest fall in a single day since the
crash of 1987 - the shares had fallen 50% so far that year. On August 15,
2007, Merrill Lynch advised its clients to delude their have in Countrywide.
On Thursday, August 16, 2007 the company expressed concerns over liquidity because of the decline of the secondary mart for securitized mortgage obligations. Countrywide also declared its aim to draw on the entire $11.5 1000000000 assign line from a group of 40 banks including JPMorgan Chase. On Friday August 17, many depositors sought to withdraw their bank accounts. Countrywide also designed to make 90% of its loans conforming. By this point have shares had lost about 75% of their extreme value and reflection of bankruptcy broadened. At the aforementioned instance the agent Reserve Bank lowered the discount rate 0.5% in a last-minute, early morning conference call. The Fed accepted about $17.2 1000000000 in repurchase agreements for mortgage backed securities to assistance in liquidity. This also helped calm the have mart and investors promptly responded positively with the Dow posting gains.
Additionally, the firm was forced to restate income it had claimed from increased but unpaid interest on \"exotic\" mortgages where the initial pay rate was less than the amortization rate. In 2007 it became apparent such of this interest had become uncollectable.
In a honor dated August 20, agent Reserve agreed to waive banking regulations at the request of Citigroup and Bank of America. The Fed agreed to exempt both banks from rules that restricted the amount that federally-insured banks can lend to attendant brokerage companies to 10% of bank capital. Until then, banking regulation was that banks with federally individual deposits should not be place at venture by brokerage subsidiaries' activities. On August 23, Citibank and Bank of USA said that they and digit another banks accessed $500 million in 30-day financing at the Fed's discount window. The aforementioned day, Countrywide Financial obtained $2 1000000000 of newborn top from Bank of USA Corp. For this the Bank of USA brokerage arm would get convertible preferred stock.
On November 26, 2007, Countrywide have was hammered on the NYSE, dropping over 10% to a level of $8.64/share; less than half the share's value in August when the firm faced bankruptcy rumors and a fraction of its value in 2006. One proximate drive were reports that the Atlanta agent Home Loan Bank had extended a large amount of its assign to Countrywide to offset its inability to raise assets in the private market. Senator Chuck Schumer titled for an enquiry as to the prudence of the FHLBB's action in this regard.
From 2005 to 2007 Angelo R. Mozilo oversubscribed such of his CFC have realizing $291.5 million in profits. A class action meet was filed on behalf of shareholders alleging securities violations.
In September 2008, Countrywide sends letters to its mortgage customers to
inform that one of their employees had taken identity information that contained
social section numbers and birth dates. Countrywide apologizes in the honor
and offers liberated assign monitoring for 90 days.
In September 2007, after months of negative message and the announcement of
a reduction of 20% of its workforce, Countrywide launched a open relations
crusade aimed at demoralized employees. Employees were expected to sign a pledge
to \"demonstrate their commitment to our efforts\" and \"to
tell the Countrywide story to all\". Those who signed the pledge customary
a green foam Protect Our House wristband.
The endgame in Bank of America's $4 1000000000 takeover of Countrywide Financial began with a December sound call from Countrywide Chief Executive Angelo Mozilo to his Bank of USA counterpart, Kenneth D. Lewis. And on January 11, 2008, Bank of USA declared it had agreed to acquire Countrywide for $4 1000000000 in an all-stock transaction. The stock's value settled at about $5 1/2 per deal following the announcement; it had been as low as $4.43 before the Bank of USA deal was announced.
After more than six months of business deterioration at Countrywide—despite a $2 1000000000 infusion of cash from Bank of USA in August—Mozilo said he was ready to intercommunicate in the towel, according to Lewis.
At the aforementioned time, having watched Countrywide dramatically reorganise its dealings in a bid to survive, Bank of USA executives began to believe Countrywide's big U.S. mortgage playing might be worth having.
\"The knowledge to get that kind of size and bit became more appealing as we saw the playing model modify to a model we could accept,\" Lewis said. \"We considered the lawsuits, the negative message that Countrywide had. We weighed the short-term discompose versus what we think will be a very good deal for our shareholders.\"
Bank of USA deployed 60 analysts from its headquarters in Charlotte, N.C., to Countrywide's headquarters in Calabasas, Calif. After four weeks analyzing Countrywide's jural and business predicament, and modeling how its give portfolio was likely to perform, Bank of USA offered an all-stock deal valued at $4 1000000000 for Countrywide—a fraction of the company's $24 1000000000 mart value a year ago. Countrywide shareholders approved the deal on June 25, 2008 and it closed July 2, 2008.Bank of USA declared on June 26, 2008 that the takover of Countrywide Financial Corp. will termination in the expiration of 7,500 jobs over the next digit years.
The deal is a landmark in the housing crisis, given Countrywide's prominence
as the nation's largest mortgage lender, at least until recently.
|Home Loans Article by Svetlana Lozovenko|
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