Friday, August 24, 2007

Countrywide and Outside

You can't escape reading about the national credit crisis and its effect on home owners and the economy in general. Countrywide, the nation's largest holder of mortgage loans, is mentioned in particular in recent articles. The coverage focuses on the fact that lenders have been too aggressive with loans and now many are in default.

So why do I keep getting pitches from Countrywide to refinance with an ARM (adjustable rate mortgage), a finanacially stupid idea for the consumer and the cause of current grief? I also get weekly pitches to take out a home equity loan. The company's Web site also seems to lack prudent discrimination in its loan offers.

These pitches are off base in the current climate--indeed they are wide and outside. When consumers--and regulators--are reading in the papers that the company is trying to clean up its act, they should expect the predatory lending practices would also cease.

If the company struggles further they will get no sympathy from me. I'm sure the sentiment will be broadly shared....countrywide. Such is the price of relentless marketing taking the place of thoughtful public relations.

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