It was a rough day for shares of Countrywide Funding amid speculation that it would further give away the store through a bailout similar to Bank of America's (BAC) recent "investment". For $2 billion BAC could end up with about 15% ownership of Countrywide through preferred shares. CFC shares fell as much as 5%, but ended the day down about 2%.
National Mortgage News tonight is reporting the Countrywide refused to comment on the speculation, which was born out of story in the New York Post reporting that Goldman Sachs (GS) was among the parties circling for a potential investment.
Portellus Inc is shutting down its mortgage operations.
National Mortgage News also reports that Citigroup's (C) warehouse lending unit First Collateral Loan Services is no longer taking new mortgage banking customers. NMS quoted one source as saying, "Warehousing isn't the best business to be in right now." LOL, if that isn't an understatement.
H&R Block cuts 575 Option One mortgage jobs
And this happy reminder... Deluge of mortgage interest rate resets ahead.