Countrywide Home Loans Ripping off consumers and lining their own pockets every way they can! Dallas Texas

Bank of America cashed a check where the written and numerical amount were different - The written amount was One hundred and fifty five dollars and no cents . They cashed it for $455. based on the numerical amount. Some one added a little squiggle mark to the 1 so it looked like it was a 4. And they insisted it was the numerical amount not the written amount that mattered.

Needless to say I closed my accounts with them because they did it twice to the same car payment in different months. The first time both the written and numerical amounts were the same.

The written out amount on a check trumps the numeric amount. Most states have codified the common law, and I believe the Federal Regulations have also done so..the reason for the rule is that is is by far easier for someone who is trying to forge a check so that it is payable in a greater amount if the numerals were controlling.

Doesn't excuse the horrendeous customer service you (and I) have experienced, but I thought you'd like to know.

If you want verification, I'd call your local city/district attys. office and ask to speak with someone in thier financial crimes dept.

Many banks these days will not pay on a check where there is a discrepancy between the written and numerical amounts. However, when they do, the written amount is supposed to always take precedence over the numerical amount. I worked for a bank over 20 years ago & it was the rule then too.

Mortgage lender files for Chapter 11
04/02/2007 U.S.A. Today
Look under Feb. 9 entry in here to get a better picture of Countrywide's situation back in 2007.

Mortgage lender files for Chapter 11



Key events and dates in the history of the subprime mortgage sector, beginning with the formation of subprime lender New Century Financial which filed for bankruptcy Monday.

1995 - New Century is founded in Irvine, Calif., by Edward Gotschall, Brad Morrice and Robert Cole, who as executives at prime mortgage lender Plaza Home Mortgage started up another subprime lender, Option One.

1996 - New Century makes its first loan. It closes the year with 35 offices, 333 associates and annual loan production volume of $357 million.

1997 - New Century raises $28.8 million in its first initial public offering.

1998 - Rising delinquencies and the aftermath of the Russian debt crisis spook investors in subprime, but U.S. Bancorp likes the business enough to strike a strategic alliance with New Century, buying $20 million of its preferred shares.

2002 - U.S. Bancorp sells its preferred shares in New Century after also selling off common stock it had previously bought in the bank. Loan production hits $14.2 billion.

2004 - New Century converts to real estate investment trust (REIT) structure, which sells shares in an initial public offering raising $783 million. Annual loan production hits $42.2 billion and the company employs 5,300 associates in 101 offices.

2005 - New Century ranks third on the Wall Street Journal "Top Guns" shareholder scoreboard list in the three-year average annual return category. Agrees to buy some assets of Royal Bank of Canada's RBC Mortgage. Loan production hits $56.1 billion.

May 2006 - Ameriquest Mortgage fires one-third of its employees, raising fears that other firms including New Century could lay off personnel as a five-year housing boom cools.

Feb. 7, 2007 - New Century says it will restate earnings for the first three quarters of 2006 and report a loss for the fourth quarter because of errors in accounting for losses on repurchased loans. Its shares fall 17%.

Europe's biggest bank, HSBC Holdings says it will take a charge for bad debts of more than $10.5 billion for 2006 due to problems with its U.S. mortgage book.

Feb. 9 - Standard & Poor's downgrades New Century to a "junk" rating.

Feb. 9 - Countrywide Financial, a California home lender, says it reduced its lending to people with poor credit histories in January as foreclosures rose to their highest level since 2002.

Feb. 12 - Countrywide and New Century lead mortgage lenders in a sell-off as Moody's Investors Service warns of further defaults.

Feb. 13 - Fremont General, one of the largest providers of subprime loans, says it has stopped offering some second mortgages.

Feb. 27 - Fremont General delays its fourth quarter results and says it may not file by the March 1 deadline.

March 1 - New Century delays filing its annual report

March 2 - New Century fires 4.4% of its workforce and says U.S. prosecutors are probing trading in its securities.

March 5 - New Century loses 60% of its value, leading a broad decline among the subprime lenders.

March 8 - David Einhorn, a principal at hedge fund Greenlight Capital, resigns from New Century's board. The company stops taking new loan applications.

March 9 - General Electric's WMC mortgage unit, a major player in the subprime business, says it will lay off 20% of its workforce.

March 12 - New Century says its lenders plan to halt financing, pushing the company close to bankruptcy. Standard & Poor's cuts it to "default."

March 13 - NYSE suspends New Century share trading. Shares shift to over-the-counter trading, where they tumble further.

April 2 - New Century files for Chapter 11 bankruptcy protection in Delaware bankruptcy court.

By Sue Kirchhoff, USA TODAY
WASHINGTON New Century Financial (NEWC), the nation's second-largest subprime mortgage lender, Monday filed for bankruptcy protection. The company also said it was laying off more than half its staff and would sell part of its operations.

The much-anticipated announcement underscores the turmoil among subprime lenders, which offer higher-priced loans to those with impaired credit. A slew of lenders have closed their doors in recent months. More than 14% of borrowers with subprime loans are behind on their payments, according to the Mortgage Bankers Association.

Additional troubles loom this year as at least $300 billion in subprime adjustable-rate mortgages reset to higher interest rates.

"Given the sudden and significant challenges facing our industry and New Century specifically, bankruptcy is the best means available to allow the company's assets and operations to be sold through an orderly process," Brad Morrice, CEO of the Irvine, Calif.-based firm said in a statement.

New Century filed for bankruptcy protection in Delaware. As part of its overall restructuring, New Century will eliminate about 3,200 staff positions and sell its mortgage-servicing assets to Carrington Capital Management for $139 million. Further, Greenwich Capital Financial Products and CIT Group have agreed to provide as much as $150 million in financing to allow the firm to stay in business during bankruptcy reorganization. New Century will also sell certain loans to Greenwich Capital for $50 million.

The sales of the servicing operations and loans are both subject to court approval and possible higher offers, the company said.

In a statement in March, the firm said it could face claims of about $8.4 billion from its backers, including Bank of America, Citigroup, Goldman Sachs and Morgan Stanley.

In recent weeks, New Century has disclosed that it is under investigation for possible trading and accounting violations. A number of states have also cracked down on the firm. The company stopped making loans last month but advised customers it is still accepting payments on outstanding mortgages.

The big question facing investors and economists now is whether the problems in the subprime sector will spill over into related industries, affecting consumer spending and overall economic growth.

"We're all holding our breath. As long as it sticks to subprime, it's going to hurt a number of borrowers badly, but it may not affect (products) all the way across the market," says Brad Hintz of Sanford C. Bernstein & Co.

The respected UCLA Anderson Forecasting Center, in a report Monday, said it did not expect the subprime travails to plunge the national economy into recession. But the center's economists say they are "increasingly nervous."

The UCLA forecasters predict that tightening credit standards in the subprime sector "will likely trigger a second leg down in the housing market in terms of output and prices."

It expects a "significant slowing" in California's economy.
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Key events and dates in the history of the subprime mortgage sector, beginning with the formation of subprime lender New Century Financial which filed for bankruptcy Monday.

1995 - New Century is founded in Irvine, Calif., by Edward Gotschall, Brad Morrice and Robert Cole, who as executives at prime mortgage lender Plaza Home Mortgage started up another subprime lender, Option One.

1996 - New Century makes its first loan. It closes the year with 35 offices, 333 associates and annual loan production volume of $357 million.

1997 - New Century raises $28.8 million in its first initial public offering.

1998 - Rising delinquencies and the aftermath of the Russian debt crisis spook investors in subprime, but U.S. Bancorp likes the business enough to strike a strategic alliance with New Century, buying $20 million of its preferred shares.

2002 - U.S. Bancorp sells its preferred shares in New Century after also selling off common stock it had previously bought in the bank. Loan production hits $14.2 billion.

2004 - New Century converts to real estate investment trust (REIT) structure, which sells shares in an initial public offering raising $783 million. Annual loan production hits $42.2 billion and the company employs 5,300 associates in 101 offices.

2005 - New Century ranks third on the Wall Street Journal "Top Guns" shareholder scoreboard list in the three-year average annual return category. Agrees to buy some assets of Royal Bank of Canada's RBC Mortgage. Loan production hits $56.1 billion.

May 2006 - Ameriquest Mortgage fires one-third of its employees, raising fears that other firms including New Century could lay off personnel as a five-year housing boom cools.

Feb. 7, 2007 - New Century says it will restate earnings for the first three quarters of 2006 and report a loss for the fourth quarter because of errors in accounting for losses on repurchased loans. Its shares fall 17%.

Europe's biggest bank, HSBC Holdings says it will take a charge for bad debts of more than $10.5 billion for 2006 due to problems with its U.S. mortgage book.

Feb. 9 - Standard & Poor's downgrades New Century to a "junk" rating.

Feb. 9 - Countrywide Financial, a California home lender, says it reduced its lending to people with poor credit histories in January as foreclosures rose to their highest level since 2002.

Feb. 12 - Countrywide and New Century lead mortgage lenders in a sell-off as Moody's Investors Service warns of further defaults.

Feb. 13 - Fremont General, one of the largest providers of subprime loans, says it has stopped offering some second mortgages.

Feb. 27 - Fremont General delays its fourth quarter results and says it may not file by the March 1 deadline.

March 1 - New Century delays filing its annual report

March 2 - New Century fires 4.4% of its workforce and says U.S. prosecutors are probing trading in its securities.

March 5 - New Century loses 60% of its value, leading a broad decline among the subprime lenders.

March 8 - David Einhorn, a principal at hedge fund Greenlight Capital, resigns from New Century's board. The company stops taking new loan applications.

March 9 - General Electric's WMC mortgage unit, a major player in the subprime business, says it will lay off 20% of its workforce.

March 12 - New Century says its lenders plan to halt financing, pushing the company close to bankruptcy. Standard & Poor's cuts it to "default."

March 13 - NYSE suspends New Century share trading. Shares shift to over-the-counter trading, where they tumble further.

April 2 - New Century files for Chapter 11 bankruptcy protection in Delaware bankruptcy court.



By Sue Kirchhoff, USA TODAY
WASHINGTON New Century Financial (NEWC), the nation's second-largest subprime mortgage lender, Monday filed for bankruptcy protection. The company also said it was laying off more than half its staff and would sell part of its operations.

The much-anticipated announcement underscores the turmoil among subprime lenders, which offer higher-priced loans to those with impaired credit. A slew of lenders have closed their doors in recent months. More than 14% of borrowers with subprime loans are behind on their payments, according to the Mortgage Bankers Association.

Additional troubles loom this year as at least $300 billion in subprime adjustable-rate mortgages reset to higher interest rates.

"Given the sudden and significant challenges facing our industry and New Century specifically, bankruptcy is the best means available to allow the company's assets and operations to be sold through an orderly process," Brad Morrice, CEO of the Irvine, Calif.-based firm said in a statement.

New Century filed for bankruptcy protection in Delaware. As part of its overall restructuring, New Century will eliminate about 3,200 staff positions and sell its mortgage-servicing assets to Carrington Capital Management for $139 million. Further, Greenwich Capital Financial Products and CIT Group have agreed to provide as much as $150 million in financing to allow the firm to stay in business during bankruptcy reorganization. New Century will also sell certain loans to Greenwich Capital for $50 million.


The sales of the servicing operations and loans are both subject to court approval and possible higher offers, the company said.

In a statement in March, the firm said it could face claims of about $8.4 billion from its backers, including Bank of America, Citigroup, Goldman Sachs and Morgan Stanley.

In recent weeks, New Century has disclosed that it is under investigation for possible trading and accounting violations. A number of states have also cracked down on the firm. The company stopped making loans last month but advised customers it is still accepting payments on outstanding mortgages.

The big question facing investors and economists now is whether the problems in the subprime sector will spill over into related industries, affecting consumer spending and overall economic growth.

"We're all holding our breath. As long as it sticks to subprime, it's going to hurt a number of borrowers badly, but it may not affect (products) all the way across the market," says Brad Hintz of Sanford C. Bernstein & Co.

The respected UCLA Anderson Forecasting Center, in a report Monday, said it did not expect the subprime travails to plunge the national economy into recession. But the center's economists say they are "increasingly nervous."

The UCLA forecasters predict that tightening credit standards in the subprime sector "will likely trigger a second leg down in the housing market in terms of output and prices."

It expects a "significant slowing" in California's economy.


IS THE ECONOMY DOING ANY BETTER WITH THE MORTAGE MELTDOWNS AND PEOPLE LOSING THEIR HOMES DAILY?

I AM WATCHING THIS YEAR'S NEWS ( 2008) ABOUT COUNTRYWIDE WITH GREAT INTEREST! Since 2007 doesn't seem to be too great for them.

YOU BETTER RESEARCH ANY COMPANY YOU DO BUSINESS WITH BEFORE YOU DO BUSINESS WITH THEM!