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Maybe the politicians think that with everyone getting ready for 4th or July that the news of a sleight-of-hand bailout bill won’t raise too many eyebrows.  Maybe they’re wrong (again).  With the holiday fast approaching legislators in both the House and Senate are getting ready to put through the mother of all mortgage bail out bills in an attempt to stave off the further decimation of the housing market.

What a surprise.  All the rhetoric from last summer goes out the window as the market worsens and votes become more precious.  Legislators have decided to mortgage each of our futures with the tax of the ignorant and greedy.

The bill, called “the most sweeping mortgage reform since the New Deal,” has a ton of bail out provisions loaded in - giving lenders and borrowers the ability to just pass over the risk of bad mortgage debts to Fannie, Freddie and the Federal Housing Administration.  In otherwords, the taxpayers of the United States of America.

Your bail out bill grab bag includes:

• permanent conventional loan limit increases from $417,000 to $625,000
• tax credit for first time homebuyers for $8k or 10% of the home’s value (for unoccupied homes)
• $150 million in foreclosure counseling funds
• “stricter” guidelines on lender disclosure of ARM loans
• up to $900 million for the Affordable Housing Trust Fund to be financed by fees from Fannie and Freddie
• rescue refinancing which allows distressed borrowers to refinance in to a federally guaranteed 30-year fixed loan at 85% LTV from wherever they sit currently with their lender

Take a look at that last one.  Even with the requirements attached to it (lender approval, full-doc income, etc.) this is the definition of a bail out.  Wholesale debt forgiveness.  The lender has to eat the cramdown or foreclose; but the simple fact is that the government is taking all the folks who borrowed too much, bet big on real estate and racked up mortgage debt and saying “don’t worry about it, we’ve got this one.”

Thanks Uncle Sam, but put down the check and let’s divide this up like grown-ups.  I’ll pay for my mistakes - you pay for yours - and let’s call it a day.

From the New York Times:

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The centerpiece of the Senate package is a rescue-refinancing plan aimed at stemming the tide of more than 8,000 new foreclosures a day that lenders are filing across the country. The plan would allow distressed borrowers and their lenders to stem losses by allowing qualified owners to refinance into more affordable, 30-year fixed-rate loans with a federal guarantee.

The legislation would also provide benefits for first-time buyers, who would receive a refundable tax credit of up to $8,000, or 10 percent of the value of a home, on purchases of unoccupied housing.

As part of a regulatory overhaul of Fannie Mae and Freddie Mac, the mortgage finance giants, the bill would permanently increase to $625,000, from $417,000, the limit on loans they can purchase from lenders in expensive housing markets, making it easier for borrowers to obtain mortgages at discounted rates. Despite a presidential veto threat, the package received overwhelming bipartisan support, clearing by 83 to 9 a crucial procedural vote in the Senate on Tuesday morning.

Final passage of the bill was snagged temporarily in the Senate Tuesday evening because of a fight over renewable energy tax credits. Still, major supporters of the bill said they hoped it would be completed before for the holiday.

“There’s a great desire to act,” said Representative Barney Frank, Democrat of Massachusetts, the bill’s main author in the House. “We’re just not there yet.”

The bill would provide $150 million to expand counseling for borrowers to prevent foreclosure and would establish stricter disclosure rules to require lenders to make plain the maximum monthly payment for a borrower with an adjustable rate loan.

The bill also establishes an Affordable Housing Trust Fund, to be financed by $500 million to $900 million in fees from Fannie Mae and Freddie Mac. The fund will cover any expenses related to the foreclosure rescue plan for three years, and will be used to create affordable rental housing.

Under the refinancing plan, only borrowers seeking to remain in their primary home would be eligible. Lenders would first have to agree to cut the principal balance of loans to roughly 85 percent of each property’s current value.

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Illinois Attorney General Lisa Madigan plans to file suit against Countrywide and their orange-tinted CEO Angelo Mozilo tomorrow for risky and deceptive mortgage lending practices in the state.  Ms. Madigan claims that the state has ample evidence to charge Countrywide for lending practices that have put borrowers in loans that can’t be repaid, and using sales and marketing tactics that encouraged borrowers and rewarded employees to take and make risky loans.

Illinois, like other parts of the country is dealing with a massive uptick in home foreclosures.

From the Wall Street Journal:

In a draft of the complaint, Illinois alleges that the company engaged in “unfair and deceptive practices” in the sale of mortgage loans. The 78-page document says the company loosened its underwriting standards, structured loans with “risky features” and engaged in “marketing and sales techniques” that incentivized employees and mortgage brokers to push loans whether or not homeowners had the ability to repay them.

…

In an interview, Illinois Attorney General Lisa Madigan said Countrywide “broke the law and we plan to hold them accountable for that.” She added that Countrywide’s actions have led to widespread foreclosures in her state and have wrecked havoc around the world. “The impact on individual homeowners and communities and the country and the global economy is unbelievable.”

Ms. Madigan says she is asking that all Countrywide loans originated using “unfair and deceptive” practices be rescinded or modified in some way, even if Countrywide has to repurchase the loans. She is also asking that her office be given 90 days to review any loans that are currently in foreclosure or that are moving toward foreclosure. As part of its investigation, the Illinois attorney general’s office interviewed about 30 former Countrywide employees and mortgage brokers and reviewed more than 100,000 pages of documents, Ms. Madigan said.

Mr. Mozilo was included as a defendant because he “participates in, manages, controls, and has knowledge of the day-to-day activities” of Countrywide, the lawsuit says.

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Illinois to sue Countrywide, Mozilo

I thought this was cool.

The New York Stock Exchange has made real-time price data available to the public free of charge via Google and CNBC.  So if you’re in to stocks but not in to paying for real time pricing you can follow along at either of the two sites.  Google and CNBC are picking up your tab by paying the NYSE for the right to publish real-time data.

A sample here (fyi, I don’t hold any positions in MSFT).

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Real-time stock data for NYSE via Google, CNBC

AMBAC, MBIA and FGIC are trying to unwind $125 billion in contracts written to insure subprime mortgage debt with banks across the country as the mortgage insurers try to recover from the beating they’ve taken during the housing bust.  Since the big bond insurers ratings have been cut on capital concerns they are working quickly to try to mitigate exposure to future losses by taking some upfront cost to get out of the details.

From Market Watch:

Bond insurers, including Ambac Financial Group, MBIA Inc. and Financial Guaranty Insurance Co., reportedly are trying to unwind $125 billion of guarantees they sold on risky debt securities.

MBIA, Ambac and FGIC are talking with banks about “commuting” these insurance contracts, which were sold in the form of credit-default swaps, a type of derivative that pays out in the event of default, the Financial Times reported on Monday.

The contracts guaranteed payments on collateralized debt obligations — complex debt securities often backed by mortgages that have plunged in value amid a recent wave of foreclosures.

MBIA lost their AAA ratings from Moody’s Investors Service last week, while FGIC was cut to junk status by the agency. Without top ratings, bond insurers can’t sell new guarantees, while policy-holders such as banks and big brokerage firms see the value of the contracts they previously bought drop in value.

That has added a renewed sense of urgency to the talks on commuting the contracts, the newspaper reported.

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Bond insurers try to back out of $125 billion in mortgage guarantees

Citigroup may be near another round of layoffs this week as it attempts to reach its goal of 6,000 layoffs in response to the deteriorating credit markets.  The company has already laid off approximately half that number, and sources inside the company say more are on the way.

This shouldn’t really surprise anyone.  Citi has been one of the hardest hit by bad mortgage bets and has done nearly everything in its power to stay afloat - including taking on large sums of capital from soveriegn wealth funds.

From Bloomberg:

Citigroup Inc. may begin another round of job reductions as soon as this week under a plan drawn up in March to cut the trading and investment-banking workforce by 10 percent, said a person with knowledge of the matter.

The largest U.S. bank has eliminated about half of the 6,000 jobs targeted since then, said the person, who declined to be identified because Citigroup hasn’t disclosed the plans publicly. Citigroup employs more than 300,000 people worldwide and has announced about 13,000 job reductions this year.

Citigroup has lost more than any company in the mortgage market rout and its shares tumbled 63 percent in the past year. Pandit, 51, was promoted in December to replace Charles O. “Chuck” Prince, who was ousted the previous month.

Citigroup said in January it would eliminate about 4,000 jobs in the securities division, and said two months later that the number had increased by about 2,000. Citigroup then said in April it would slash 7,000 jobs outside the investment-banking group over the next year, and executives have said further reductions are likely.

The Wall Street Journal reported yesterday that employees may begin receiving termination notices this week.

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Citi to cut more jobs as part of 6,000 position reduction plan

Countrywide’s continued bleeding of cash (more than $2.5 billion over the last 3 quarters) has reduced the value of the Bank of America buyout deal by a billion dollars, reports Bloomberg.  The original $4 billion bail out is now valued at a $3 billion deal.

The retail branches, servicing portfolio and remarketing opportunity numbers must pencil out at some huge profit number for BofA to put up with the political, publicity and legal nightmare that is Countrywide.

From Bloomberg on the shaky deal:

Bank of America Corp.’s offer for Countrywide Financial Corp., the biggest U.S. mortgage lender, has lost $1 billion, or a quarter of its value since January, as the housing slump points to additional losses for lenders.

After four months of falling share prices, Bank of America’s stock swap is valued at $3 billion, compared with about $4 billion when the deal was announced on Jan. 11. While investors would get stock valued at $5.13 a share, Countrywide trades for 6 percent less. Investors are being scared off by weak home prices and legal risks, said Abigail Hooper, managing director of merger arbitrage hedge fund Havens Advisors.

Bank of America Chief Executive Officer Kenneth Lewis bailed out Countrywide after rising defaults and foreclosures left the Calabasas, California-based lender on the brink of bankruptcy. Bank of America said last month that it may not guarantee all of Countrywide’s debt, increasing concern about a default. A federal investigation into lending practices could disclose more problems, said Hooper.

“If they were to find something that suggested fraud, this company could go into bankruptcy,” Hooper said. “Right now people in the arb community don’t want to take that kind of risk.” Hooper said her New York-based firm has a “small position” in Countrywide.

Countrywide is under federal investigation as to whether officials misrepresented the company’s financial position and quality of its mortgages in regulatory filings, a person with knowledge of the probe said on March 8. In its first-quarter report, Countrywide said it has been told by the Justice Department that the Federal Bureau of Investigation can’t confirm or deny whether a probe is being conducted.

“The investing public is slowly coming to the conclusion that this train wreck was just in the beginning stages,” said Julian Mann, a mortgage and asset-backed bond manager at First Pacific Advisors LLC in Los Angeles, which manages $11 billion. “If I was Ken Lewis, I might be reconsidering this deal. Obviously, the shareholders are not excited.”

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WaMu, a bank that I consider one of the most under-discussed potential failure candidates as this credit crisis worsens, reported job cuts for 1,200 positions across the country in an effort to reduce costs and trudge back towards profitability.

WaMu has huge exposure to option ARM loans, with a ton of their profit booked as deferred interest “earned” on those loans and some of the smallest loan loss reserves out of any of the big depositories.

From Market Watch on the layoffs:

Washington Mutual  said Thursday that it is cutting 1,200 more jobs as part of the lender’s efforts to reduce costs and return to profitability. More than half of the job cuts — 775 positions — are in California and Florida, two formerly booming real estate markets that have been hit hard by the mortgage crisis. Another 270 positions were reduced in Washington state. The cuts are part of a plan WaMu announced in April to lower expenses by $500 million to $600 million, according to a spokesman at the lender. WaMu already cut 3,000 jobs earlier this year as it closed a series of home loan centers. The job losses announced on Thursday affect back-office and support workers.

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WaMu cuts 1,200 jobs

UCLA’s Anderson school of business reported that they see the first ‘dim flicker’ of light at the end of the housing collapse in California, citing year-over-year transaction increases in areas like Riverside (one of the hardest hit by the bubble).  To me this just smacks of analysts wanting to be the first to call bottom without consideration to the underlying fundamentals of the California market.

The two most important of which are the fact that a majority of the loans in the more expensive markets were made with a combination of stated (a/k/a fake) income and exotic loan products like option arms and interest only loans that have yet to recast or adjust.  How can anyone call for a bottom and say that foreclosures will ease in 2009 with a clear wave of resets looming on the horizon for 2009-2012 that are actually more severe in nature than ARM resets?  That’s irresponsible.

An option ARM reset can increase the monthly payment requirement of a borrower 4-5 fold.  With no equity to refinance these homes are going to go cascading in to foreclosure further hurting the market.  Any one that does not take this eventuality as a serious threat to the market is just plain ignorant.  It’s going to be messy.

See the graph and you tell me if we’re out of the woods yet.

Courtesy of Calculated Risk.

From Bloomberg:

“The combination of steep price declines, lower interest rates, and an easing of the credit crunch may now be bringing bargain hunting buyers back into the market,” for California homes, Ryan Ratcliff, an Anderson Forecast economist, wrote in the report. Riverside County posted a year-on-year increase in the number of homes sold, he wrote.

Foreclosures likely will continue to hurt California’s housing market for the rest of this year and then start to moderate in 2009, the Anderson Forecast said. While a “normal” housing market “is still a long way off,” according to the report, the increase in home sales in some parts of the state is a positive sign.

`Dim Flicker’

“This is the very dim flicker of the light at the end of the tunnel,” Ratcliff said in an interview. “I can’t say that I see an unambiguous sign of a turnaround, because by the time it’s unambiguous, it’s already been happening three or four months.”

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UCLA spending too much time with the NAR

AIG, the finance giant that has taken repeated and severe losses related to mortgage melt-down, may see its CEO resign as the company continues to reel in the wake of write downs.

From Bloomberg:

American International Group Inc.’s board is meeting today and may accept the resignation of Chief Executive Officer Martin Sullivan, the Wall Street Journal reported, citing an unidentified person familiar with the situation.

Sullivan’s resignation is “highly likely” to happen, the newspaper said, citing the person.

AIG may replace Sullivan after turmoil in housing and credit markets caused the worst loss in the company’s 89-year history. The company, ranked No. 1 by assets among insurers, has lost more than a third of its market value since Sullivan took the top job following the ouster of Maurice “Hank” Greenberg in 2005.

Sullivan, 53, would join former CEOs including Citigroup Inc.’s Charles “Chuck” Prince and Merrill Lynch & Co.’s Stan O’Neal who lost their jobs in the collapse of the U.S. subprime mortgage market. AIG posted a $5.29 billion fourth-quarter loss, two months after Sullivan reassured investors that any drop in the value of its holdings would be “manageable.”

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AIG Chief may step-down

Breaking news today from Countrywide. Effective today Countrywide wholesale will no longer offer the Non-Conforming Fast & Easy document waiver program. Fast & Easy is Countrywide’s version of stated income. Non-conforming loan amounts will no longer be eligible for stated income regardless of credit score.

This is a huge guideline change for the company that prided itself on offering jumbo loans with no income documentation in the past. The elimination of stated income loans from Countrywide should further depress home prices in expensive states where income and home prices just don’t line up.

From an internal email regarding the change:

Effective 8:00 pm (PT), Friday June 13, 2008, the Non-Conforming Fast & Easy document waiver program will no longer be available.

Guideline Impact
The following LPGs will be updated effective, June 13, 2008:
LPG 12.10 - Non Conforming Programs, Fixed Rate, Fixed Period ARMs, Short Term ARMs, Full, Alt, and Fast and Easy (sm) Documentation

Pipeline Protection

• Loans currently in the pipeline are eligible under the old guidelines only if submitted to CAWL via CWBC or boarded in EDGE and Approved by 8:00 pm (PT) Friday, June 13.
• Loans in the pipeline must be locked on or before June 27, 2008, and must fund/close on or before Monday, July 14, 2008.
• Any lock extension/re-lock will be subject to current lock extension/re-lock polices, and the loan must still fund on or before Thursday, July 14, 2008.
• If any material changes are made to a loan currently in the pipeline at any time after loan approval and prior to funding/closing, the original loan approval is no longer valid and the loan must be countered to full doc. Examples of material changes include, but are not limited to: FICO Score, Loan Amount, LTV, CLTV, Income, Employment, Assets, or Program and/or ratios.
• Loans that are not eligible under the old guidelines are subject to the new guidelines, and must generally either be Counteroffered or Declined (as applicable).

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Countrywide eliminating Non-Conforming Fast & Easy stated-income loans today

Breaking news today from Countrywide. Effective today Countrywide wholesale will no longer offer the Non-Conforming Fast & Easy document waiver program. Fast & Easy is Countrywide’s version of stated income. Non-conforming loan amounts will no longer be eligible for stated income regardless of credit score.

This is a huge guideline change for the company that prided itself on offering jumbo loans with no income documentation in the past. The elimination of stated income loans from Countrywide should further depress home prices in expensive states where income and home prices just don’t line up.

From an internal email regarding the change:

Effective 8:00 pm (PT), Friday June 13, 2008, the Non-Conforming Fast & Easy document waiver program will no longer be available.

Guideline Impact
The following LPGs will be updated effective, June 13, 2008:
LPG 12.10 - Non Conforming Programs, Fixed Rate, Fixed Period ARMs, Short Term ARMs, Full, Alt, and Fast and Easy (sm) Documentation

Pipeline Protection

• Loans currently in the pipeline are eligible under the old guidelines only if submitted to CAWL via CWBC or boarded in EDGE and Approved by 8:00 pm (PT) Friday, June 13.
• Loans in the pipeline must be locked on or before June 27, 2008, and must fund/close on or before Monday, July 14, 2008.
• Any lock extension/re-lock will be subject to current lock extension/re-lock polices, and the loan must still fund on or before Thursday, July 14, 2008.
• If any material changes are made to a loan currently in the pipeline at any time after loan approval and prior to funding/closing, the original loan approval is no longer valid and the loan must be countered to full doc. Examples of material changes include, but are not limited to: FICO Score, Loan Amount, LTV, CLTV, Income, Employment, Assets, or Program and/or ratios.
• Loans that are not eligible under the old guidelines are subject to the new guidelines, and must generally either be Counteroffered or Declined (as applicable).

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Countrywide eliminating Non-Conforming Fast & Easy stated-income loans today

Breaking news today from Countrywide. Effective today Countrywide wholesale will no longer offer the Non-Conforming Fast & Easy document waiver program. Fast & Easy is Countrywide’s version of stated income. Non-conforming loan amounts will no longer be eligible for stated income regardless of credit score.

This is a huge guideline change for the company that prided itself on offering jumbo loans with no income documentation in the past. The elimination of stated income loans from Countrywide should further depress home prices in expensive states where income and home prices just don’t line up.

From an internal email regarding the change:

Effective 8:00 pm (PT), Friday June 13, 2008, the Non-Conforming Fast & Easy document waiver program will no longer be available.

Guideline Impact
The following LPGs will be updated effective, June 13, 2008:
LPG 12.10 - Non Conforming Programs, Fixed Rate, Fixed Period ARMs, Short Term ARMs, Full, Alt, and Fast and Easy (sm) Documentation

Pipeline Protection

• Loans currently in the pipeline are eligible under the old guidelines only if submitted to CAWL via CWBC or boarded in EDGE and Approved by 8:00 pm (PT) Friday, June 13.
• Loans in the pipeline must be locked on or before June 27, 2008, and must fund/close on or before Monday, July 14, 2008.
• Any lock extension/re-lock will be subject to current lock extension/re-lock polices, and the loan must still fund on or before Thursday, July 14, 2008.
• If any material changes are made to a loan currently in the pipeline at any time after loan approval and prior to funding/closing, the original loan approval is no longer valid and the loan must be countered to full doc. Examples of material changes include, but are not limited to: FICO Score, Loan Amount, LTV, CLTV, Income, Employment, Assets, or Program and/or ratios.
• Loans that are not eligible under the old guidelines are subject to the new guidelines, and must generally either be Counteroffered or Declined (as applicable).

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Countrywide eliminating Non-Conforming Fast & Easy stated-income loans today

Breaking news today from Countrywide. Effective today Countrywide wholesale will no longer offer the Non-Conforming Fast & Easy document waiver program. Fast & Easy is Countrywide’s version of stated income. Non-conforming loan amounts will no longer be eligible for stated income regardless of credit score.

This is a huge guideline change for the company that prided itself on offering jumbo loans with no income documentation in the past. The elimination of stated income loans from Countrywide should further depress home prices in expensive states where income and home prices just don’t line up.

From an internal email regarding the change:

Effective 8:00 pm (PT), Friday June 13, 2008, the Non-Conforming Fast & Easy document waiver program will no longer be available.

Guideline Impact
The following LPGs will be updated effective, June 13, 2008:
LPG 12.10 - Non Conforming Programs, Fixed Rate, Fixed Period ARMs, Short Term ARMs, Full, Alt, and Fast and Easy (sm) Documentation

Pipeline Protection

• Loans currently in the pipeline are eligible under the old guidelines only if submitted to CAWL via CWBC or boarded in EDGE and Approved by 8:00 pm (PT) Friday, June 13.
• Loans in the pipeline must be locked on or before June 27, 2008, and must fund/close on or before Monday, July 14, 2008.
• Any lock extension/re-lock will be subject to current lock extension/re-lock polices, and the loan must still fund on or before Thursday, July 14, 2008.
• If any material changes are made to a loan currently in the pipeline at any time after loan approval and prior to funding/closing, the original loan approval is no longer valid and the loan must be countered to full doc. Examples of material changes include, but are not limited to: FICO Score, Loan Amount, LTV, CLTV, Income, Employment, Assets, or Program and/or ratios.
• Loans that are not eligible under the old guidelines are subject to the new guidelines, and must generally either be Counteroffered or Declined (as applicable).

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Countrywide eliminating Non-Conforming Fast & Easy stated-income loans today

Breaking news today from Countrywide. Effective today Countrywide wholesale will no longer offer the Non-Conforming Fast & Easy document waiver program. Fast & Easy is Countrywide’s version of stated income. Non-conforming loan amounts will no longer be eligible for stated income regardless of credit score.

This is a huge guideline change for the company that prided itself on offering jumbo loans with no income documentation in the past. The elimination of stated income loans from Countrywide should further depress home prices in expensive states where income and home prices just don’t line up.

From an internal email regarding the change:

Effective 8:00 pm (PT), Friday June 13, 2008, the Non-Conforming Fast & Easy document waiver program will no longer be available.

Guideline Impact
The following LPGs will be updated effective, June 13, 2008:
LPG 12.10 - Non Conforming Programs, Fixed Rate, Fixed Period ARMs, Short Term ARMs, Full, Alt, and Fast and Easy (sm) Documentation

Pipeline Protection

• Loans currently in the pipeline are eligible under the old guidelines only if submitted to CAWL via CWBC or boarded in EDGE and Approved by 8:00 pm (PT) Friday, June 13.
• Loans in the pipeline must be locked on or before June 27, 2008, and must fund/close on or before Monday, July 14, 2008.
• Any lock extension/re-lock will be subject to current lock extension/re-lock polices, and the loan must still fund on or before Thursday, July 14, 2008.
• If any material changes are made to a loan currently in the pipeline at any time after loan approval and prior to funding/closing, the original loan approval is no longer valid and the loan must be countered to full doc. Examples of material changes include, but are not limited to: FICO Score, Loan Amount, LTV, CLTV, Income, Employment, Assets, or Program and/or ratios.
• Loans that are not eligible under the old guidelines are subject to the new guidelines, and must generally either be Counteroffered or Declined (as applicable).

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Countrywide eliminating Non-Conforming Fast & Easy stated-income loans today

Breaking news today from Countrywide. Effective today Countrywide wholesale will no longer offer the Non-Conforming Fast & Easy document waiver program. Fast & Easy is Countrywide’s version of stated income. Non-conforming loan amounts will no longer be eligible for stated income regardless of credit score.

This is a huge guideline change for the company that prided itself on offering jumbo loans with no income documentation in the past. The elimination of stated income loans from Countrywide should further depress home prices in expensive states where income and home prices just don’t line up.

From an internal email regarding the change:

Effective 8:00 pm (PT), Friday June 13, 2008, the Non-Conforming Fast & Easy document waiver program will no longer be available.

Guideline Impact
The following LPGs will be updated effective, June 13, 2008:
LPG 12.10 - Non Conforming Programs, Fixed Rate, Fixed Period ARMs, Short Term ARMs, Full, Alt, and Fast and Easy (sm) Documentation

Pipeline Protection

• Loans currently in the pipeline are eligible under the old guidelines only if submitted to CAWL via CWBC or boarded in EDGE and Approved by 8:00 pm (PT) Friday, June 13.
• Loans in the pipeline must be locked on or before June 27, 2008, and must fund/close on or before Monday, July 14, 2008.
• Any lock extension/re-lock will be subject to current lock extension/re-lock polices, and the loan must still fund on or before Thursday, July 14, 2008.
• If any material changes are made to a loan currently in the pipeline at any time after loan approval and prior to funding/closing, the original loan approval is no longer valid and the loan must be countered to full doc. Examples of material changes include, but are not limited to: FICO Score, Loan Amount, LTV, CLTV, Income, Employment, Assets, or Program and/or ratios.
• Loans that are not eligible under the old guidelines are subject to the new guidelines, and must generally either be Counteroffered or Declined (as applicable).

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Countrywide eliminating Non-Conforming Fast & Easy stated-income loans today