Continuing trouble for two of the Countrys largest mortgage lenders
KIRO TV reported that Governor Gregoire is making moves to remove Countrywide Mortgages license to do mortgage business in the state of Washington this morning. This is just the most recent problem Countrywide has had to deal with. Countrywide is currently being sued by the State of Illinois (for defrauding borrowers) and being sued by the State of California. I wonder what the Bank of America stock holders think of their purchase now. I guess they wouldnt be able to call it Countrywide anymore.
Edit 6/26/2008 - Gov. Gregoire announces $1,000,000 fine for Countrywide
Edit 6/26/2008 - The Department of Financial Insitutions has added this banner to  the front page on their website.
Washington Mutual is facing difficulties of its own. Union members picketed WAMUs last shareholders meeting in reaction to the news that WAMU has arranged a $7 billion (yes, billion) cash infusion to try to hold back the floodwaters of bad loans on their books. The shareholders question if $7 billion is enough. You can read the details in the Seattle PI.
In a related article, the PI reported the rather stunning numbers involved in Washington Mutuals move into credit cards for borrowers with blemished credit. Although WAMU insists it is a very prudent, fiscally conservative approach, the article reports that the bank added 660,000 new credit card customers in the first quarter of 2008. Mr. Dreman, of Dreman Value Management, LLC (whose company owns 28.8 million shares of WAMU stock) stated Theyre up to their necks in everything bad.
 Ill ask the obvious question. Does it make sense to use new high risk credit card accounts to offset the losses from high risk mortgages?
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