Countrywide v. Mortgage Fund That Won't Be Named (MFTWBN)
Countrywide posted loan data today that showed delinquent loans at 7.20% of its portfolio and loans into foreclosure of 1.04%. Countrywide's stock has fallen almost 50% in just the last week and at $5.12 per share is barely trading above bankruptcy levels. Compare this to MFTWBN that at third quarter-end (9/30/2007) had a 16.6% delinquency rate and 3.8% of its loans in foreclosure. If the market is betting Countrywide is going to go bankrupt what does it imply for MFTWBN? I'll tell you what it implies - Holy Shit! Plus, Countrywide is still making loans and actually saw a 1% growth in loans in December over November's rate. MFTWBN has temporarily stopped making loans. I expect disaster in MFTWBN's year-end financial statement.