Countrywide Financial Corp. has been under scrutiny as the largest mortgage lender in the United States, and is obviously a bellweather of the industry.
Today they announced they are cutting 500 jobs in the Wholesale Lending Division and Full Spectrum Lending of the company; specifically the subprime unit.
"Approximately 500 positions have been eliminated across the country. The company will monitor market changes and production levels on an ongoing basis and respond as appropriate," Countrywide said in a prepared statement.
After a shaky weekend and a run on the bank in California on Friday, the company has taken out full-page ads in the Los Angeles Times and Detroit Free Press where they are attempting to convince people their money is safe under their stewardship.
Countrywide Financial spokesman Daniel Weidman said, "For the next several weeks, months — whatever it takes — we're going to try to reassure folks that we're growing and we're a solid company,"
The problem with their growth is they had to tap an $11.5 billion credit line to be able to offer new loans.
Bill Ruberry, a spokesman Office of Thrift Supervision, which regulates thrifts in the U.S. said his office is "monitoring its situation with Countrywide very closely."
He added that they have been regularly monitoring Countrywide since it changed its to a thrift charter in March.
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what kind of blog is this? you just paraphrased reuters and businessweek - HORRIBLE WEB LOG
Posted by: Anonymous | August 20, 2007 10:58 PM | Permalink to Comment