home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/
twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Corporate Mortgage News
M e r g e r s, a c q u i s i t i o n s and private and public offerings. Other corporate activity including executive appointments, bankruptcies name changes.


Countrywide Gets the Rumor Jitters

Management says no basis for accounting rumors

June 20, 2003

By ANNE LINEBERRY


One of the nation's largest mortgage lenders Thursday took the unusual step of issuing a press release aimed at shutting down rumors.

Countrywide Financial Corp. issued a statement on its website at about 2:30 p.m. Eastern time, effectively putting an end to the stock-price slide that began at the opening bell, according to stock charts on Yahoo.com.

Wednesday, the company's stock closed at $74.46, according to Reuters News Service. Thursday morning it was $74.85 at the opening bell, Reuters said. Trading held steady as the stock price slid, falling below $69 shortly after 11 a.m, Reuters reported.

Coinciding with Countrywide's low today, the website Theflyonthewall.com posted a rumor which stated, "Countrywide Fin'l-CFC down on unconfirmed accounting rumors."

Within 10 minutes, the posting had made its way to a Yahoo Finance message board for Countrywide. The stock had already begun to rise.

At 11:47 a.m., Theflyonthewall.com had another rumor posting which said that the speculation wasn't true. By this point, Countrywide's stock was already back on the rise, and reached almost $72 by noon.

This post also made it over to the Yahoo message board, with about an hour of lag time.

Soon after, Countrywide issued a press release, which hit PRNewswire in the early afternoon, confirming that Countrywide had become aware of the financial rumors and stating that "Management firmly believes that there is no basis whatsoever for these rumors and stands behind the integrity of its accounting practices and financial statements."

Countrywide's share price closed Thursday at $70.81, down almost $4 for the day, Reuters said. Trading for Thursday was heavy, according to Yahoo finance charts.

A spokesperson for Countrywide said that the company was investigating to see if they could discover the source of the rumor, and noted that the rumor comes in close proximity to another industry player making headlines for actions concerning accounting irregularities. "The timing is odd," said Rick Simon, spokesman for Countrywide.

Secondary lender Freddie Mac fired its chief operating officer last week and replaced other officers in a flurry of activity last week surrounding the investigation into the government-sponsored enterprise's accounting practices. Freddie will be restating its 2002 earnings and is now facing class-action lawsuits related to actions taken during the investigation this calendar year.

According to a late Thursday afternoon report by Reuters, Countrywide's bonds also weakened on the rumors, with spreads widening 0.15 percentage point during the day. At the end of the day, the spreads had shrunk back to a .05 difference from Wednesday, Reuters said.


Anne Lineberry is MortgageDaily.com's editor. She previously worked as an online editor/producer for DallasNews.com and on the Metropolitan desk for the print edition of The Dallas Morning News. Email Anne at [email protected]



SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders