Cleveland's East Side Organizing Project has an interesting way of reacting to the waves of foreclosures sweeping across that city: aggressive protesting.
Supporters of the confrontational non-profit recently showed up at the home of Countrywide Financial Corporation (NYSE: CFC) regional VP Mike Garmone and, according to the Associated Press, "deployed, ringing bells at the big homes with three-car garages, handing out accusatory fliers and lambasting Garmone and his company's loans. Before departing, they left their calling card - thousands of 2 1/2-inch plastic sharks - flung across Garmone's frozen flower beds, up into the gutters, littering the doorstep."
I certainly appreciate the group's intentions but I have to wonder -- If people can't keep up with payments that they entered into a contractual obligation to pay, what exactly is a lender supposed to do? They should -- and often do -- make efforts to restructure the debt. It isn't like Countrywide is dying to take people's homes!
Bad loans haven't exactly generated billions in profits for the industry. Look at Countrywide's 2-year chart if you don't believe me. The real victims of Countrywide's lax lending are the shareholders who lost billions while CEO Angelo Mozilo sold hundreds of millions in stock.
Of course, that doesn't make good fodder for marches and picketing.
Protesting foreclosures at Countrywide Financial
Posted Mar 3rd 2008 5:31PM by Zac Bissonnette
Filed under: Countrywide Financial (CFC), Housing
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Reader Comments (Page 1 of 1)
3-03-2008 @ 6:40PM
Dan Barnett said...
Mr. Bissonnette,
The point isn't just protesting the making of loans gone bad, but rather the deceptive, predatory, & fraudulent practices that Countrywide has engaged in. These practices have incurred the ire of several Bankruptcy Judges & Trustees & are being investigated in several states. When the lender slips an unannounced & unwanted pre-payment penalty into the loan, I can see protesting too.
3-03-2008 @ 10:01PM
forestman said...
Mr. Mike Garmone
Until the Spring of last year (March 2007) I had an adjustable rate with CountryWide Mortgage and was at that time concerned with the interest rate going higher, so I elected to change financial institutions and apply with Option One, as I slid from the "Frying Pan into the Fire"
Evidently I originally signed closing papers with CountryWide that stated "No prepayment penalty clause" on one paper and the other stated that in fact there was, very confusing to say the least! Turns out that at my new closing with Option One, CountryWide was paid at closing over $14,500.00 for early payment!!
This now increased my new mortgage with Option One and my interest rate that was promised to be lower was in fact higher (fixed) with Option One.
I contacted CountryWide to have my funds returned ($14,500.00)They Turned Me Downed! They stated that it was in their right to charge this fee!
Now I'm stuck with Option One Mortgage with a higher balance and a higher interest rate and behind 2 months with the threat of "Foreclosure!! They also have a "Prepayment Penalty Clause" in their contract! So if I were able to change lenders they too would be able to STEAL additional monies!
Where do I go? What do I do?
I again ask, will you refund my money? Will you refinance me back at Countrywide deducting the prepayment penalty clause? Or will you go to sleep tonight without a care in the world? Or maybe just maybe you or someone from Countrywide will respond to this comment, shall I hold my breath?
3-04-2008 @ 3:39AM
Rob Senter said...
forestman: when your loan documents showed you owe Countrywide the prepay and the Option One Mortgage would be at a higher rate, why didn't you just stop the refinance and not sign the new loan documents???
3-05-2008 @ 4:20PM
Bill Rose said...
"Evidently I originally signed closing papers with CountryWide that stated "No prepayment penalty clause" on one paper and the other stated that in fact there was..."
EVIDENTLY??? What you're really saying is "I was a fool, because I didn't READ what I signed"! Obviously if you had paid attention to what you were signing, instead of jumping up and down saying "We have a house! We have a house!", you would have noticed that 1 paper said NO pre-payment, and 1 said there IS a pre-payment penalty.
That's NOT predatory of Countrywide's part. That's STUPID on YOUR part!
I used to be a customer service rep at Countrywide. I QUIT because I got sick of listening to the greedy real estate investors and the moron homeowners, who were calling to curse and complain that they can't afford to pay what they had AGREED to pay!!!
If ya can't read and don't have enough money to pay for rising taxes, insurance, and interest (if you have a varaible rate mortgage), then DON'T BUY A HOUSE!!!