The subprime fallout for Countrywide Financial Corporation (CFC) as it relates to the company revealed in the annuonced plan by the company Friday.
The company estimates that they'll have to reduce their workforce between 10,000 to 12,000 over the next three months, which could end up being about 20 percent of their overall workforce. In a nod toward the Federal Reserve, they added it may not be quite that much if the interest rate environment changes, i.e. drops.
"Each employee at Countrywide is considered an important member of the Countrywide family," said David Sambol, President and Chief Operating Officer. "While workforce reductions are therefore always very difficult, these decisions are being made with the utmost attention and sensitivity to the impact they will have on our Company and our people."
If the current interest rate levels don't change much, Countrywide projects their overall market origination volumes will drop by 25 percent in 2008, in contrast to 2007. The job cuts will take place within these lower market origination volumes areas.
By the end of September, 2007, the company also expects that all its residential loan business will be transferred to Countrywide Bank, FSB, and all residential loans will originate from there.
The company added they've also made changes to their guidelines so that every loan from the company is able to be sold in the secondary market or a prime loan the company can hold in its investment portfolio.
The only subprime loans the bank will originate any longer will be those that can be supported by Fannie Mae, the FHA or Freddie Mac.
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Lets get this company turned around in a positive direction and STOP excessive executive corporate greed which is now eating away all the good the company has previously done in years past. As a unhappy shareholder these days, I am still holding on to my shares with the strongest hope that things get turned around in a positive direction.Perhaps nowdays, one has to pay more attention to the quality of their shares they own and work toward STOPPING greedy management excesses. If these greedy excesses are not stopped,then this works against the small shareholders, employees,customers and works against all the good of the entire country.
Posted by: Rustin | October 19, 2007 6:48 AM | Permalink to Comment