Countrywide to cut up to 12,000 jobs

September 7th, 2007, 3:00 pm · 11 Comments · posted by Mathew Padilla

Countrywide Financial, the largest U.S. home lender, said today it will cut up to 12,000 jobs, or 20 percent of its staff, in response to “market conditions.”

The Calabasas-based lender said the cuts of 10,000 to 12,000 positions will be made over the next three months, and could be less than expected if interest rates fall or the mortgage market improves.

It announced 900 job cuts on Wednesday. It is unclear if those jobs are part of the total number announced today.

The company said it will continue to transfer all loan making to its thrift business. It will focus on “high quality” prime loans it can hold on its books or any other type of loan it can sell to investors. That means it won’t make subprime loans unless they can be sold to Fannie Mae or Freddie Mac, which lately are the only buyers.

Angelo Mozilo, chief executive, said in a statement, “We are taking decisive action to ensure that Countrywide continues to be well-positioned for further success. As we carry out our plan, the Company’s overarching focus is exactly where it has always been: to remain an industry leader in the U.S. residential lending business, to deliver value and world-class service to our customers and business partners, to enhance shareholder value, and to provide career opportunities for our people.”

When we know the impact of the layoffs in Orange County, we will update our ongoing list of Orange County mortgage casualties.

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OCTrojan says:

September 7, 2007 at 3:29 pm

Whoa 10,000+ people unemployed? If most of them are in California, that is going to hit the housing market hard because these people make good money and will be unable to meet mortgage payments unless they find an equally good paying job within 12 months.

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A Irvwin says:

September 7, 2007 at 3:37 pm

Did they wait till after the Market closed to spring that?

Carlos says:

September 7, 2007 at 4:46 pm

More blood on housing street. Actual number is 20,000 next month. No Christmas bonus.

Keypoints says:

September 7, 2007 at 4:58 pm

Perhaps Countrywide should change its name to “Citywide” to reflect its downsizing more accurately.

Suck This says:

September 7, 2007 at 5:41 pm

Every toilet needs to be flushed every now and then.

Anon says:

September 7, 2007 at 9:09 pm

My sources still say 25K will be unemployed with Countrywide by the time this is over, but 41% of workforce let go (25/60)? I have a hard time believing this…I think the government will step in before this happens.

Samson says:

September 8, 2007 at 10:03 am

Hey Mr. Flowers. IS this propaganda too? These aren’t real people. They are just imaginary, the housing and lending market is fine. Right?

Bob says:

September 9, 2007 at 11:27 am

Hey Suck,
If it truly was flushed top management would disppear. The people getting cut are the hard working family people that were not the commissioned sales people and not the management swimming in bonus money and stock options. Those guys are hanging on thight to their golden parachute strings and cutting lose everyone else.

shadow says:

September 11, 2007 at 10:18 am

Just an FYI, the Mortage industry is subject to the market, so mass hirings one year and large layoffs another,when one section of the industy grows you hire, later on if it wanes you lay off.
Yes it sucks but thats just the nature of the beast.

tina says:

September 24, 2007 at 1:10 pm

I have had a loan with Countrywide for sometime now and had recently had some major medical problems. I have tried to get Countrywide to work with me. They have told me to apply for a loan modification or a repayment plan and so on. Then they tell me I am denied. I am a first time home buyer, have three children and am trying to make it just like everyone else. I call Countrywide time and time again. It seems like all they do is laugh at me and tell me there is nothing they can do “sorry”. Because of the market my house is now upside down. So if i do a short sale Countrywide will lose about $52,000 and if go into forclosure they will lose a whole lot more. However I cannot get them to work with me. I am more than willing to pay for my house. They Don’t care if they lose the money. This is a long story made short. If anyone has any ideas please help. I thought they were trying to help. This is why Countrywide is laying off employees and are short on money and have to borrow it from investors. Because they won’t let honest hard working americans pay for there homes. They would rather lose money.

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