Understanding Countrywide Home Equity Loan
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Understanding Countrywide Home Equity Loans
Introduction
Countrywide, a prominent financial services company with a strong focus on mortgage banking, was founded in 1969 by Angelo Mozilo and David Loeb. Initially known as Countrywide Credit Industries, the company's journey began in New York and witnessed significant growth over the years.
Expansion and Development
The expansion kicked off in 1979, and by the next year, Countrywide had established 40 offices in downtown Los Angeles. In 1981, Countrywide Securities Corporation was formed to sell securities backed by their loans.
Countrywide reached a milestone of $1 billion in loan servicing in 1984. The following year, Forbes magazine recognized it as one of the 200 Best Small Companies. By 1987, it was listed by Fortune Magazine as the 37th best stock of the year. During this prosperous period, the company moved its headquarters to Pasadena, California.
Innovative Programs and Offerings
In 1992, Countrywide launched House America to provide affordable lending to minority communities and individuals with low to moderate incomes. By 1995, the Consumer Markets Division was established to engage directly with consumers. The Home Equity Lending Division and Full Spectrum Lending, Inc., offering loans to those with poor credit, followed soon after.
In 1999, CW Technology Solutions was introduced to handle international mortgage processing tasks. Later in 2000, Countrywide Capital Markets International, Ltd. was established to expand into European markets.
Achievements and Growth
By January 2006, Countrywide achieved the status of America's No.1 home loan lender according to Inside Mortgage Finance. At this point, Countrywide Bank had become the 11th largest and fastest-growing major bank in the U.S., marking a historic achievement of $1 trillion in loan servicing.
Countrywide Home Equity Loan Programs
1. Home Equity Loan: Offers fixed principal and interest payments throughout the loan term.
2. Home Equity Line of Credit: Starts with a low interest rate, followed by variable rates based on The Wall Street Journal's prime rate plus a margin or outstanding balance.
3. Combining Loans: Allows the combination of Home Equity Loans or Lines of Credit with first mortgages, offering additional tax benefits.
4. Super Streamline Home Equity Line of Credit: Features similar benefits to the regular Line of Credit but with reduced paperwork. It provides quick access to cash for those whose financial situation hasn't changed significantly since their loan closure, allowing borrowing up to 90% of the home’s value.
5. 125% Equity Loan: Provides loans up to 125% of the home’s value.
This comprehensive approach by Countrywide aimed to cater to diverse customer needs, ensuring accessibility and flexibility in home financing solutions.
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