FDIC insurance is good, but with the current state of the credit market I would not have all my eggs in one basket no matter what. I most certainly would not have ANY funds on deposit which weren't covered by FDIC. It's trivially easy to ensure every account is completely insured.

I'm not specifically saying I am concerned about Countrywide Bank's stability, just how I operate in general.

ifyouhavetoask said:No doubt Countrywide is in trouble, and they probably won't survive this, but you're not going to have a problem if you follow the FDIC limits.

No way would I have uninsured money in CFC right now.

CFC has a decent amount of deposits and a huge amount of liquidity in warehouse bank lines, they also have a lot of other unsecured financing. The jury is out on them but I am reasonably certain they will survive.

scott1961 said:Do you have over $100k there? If not I don't know why you are worried. I do but Countrywide makes it very easy to add a few PODs to get additional coverage

To each his own, but, having been a depositor in a failed bank, I wouldn't trade a few basis points for the risk that an FDIC Claims Agent might find that something wasn't done just right and denies coverage beyond $100K.

dudetheobscure said:scott1961 said:Do you have over $100k there? If not I don't know why you are worried. I do but Countrywide makes it very easy to add a few PODs to get additional coverage

To each his own, but, having been a depositor in a failed bank, I wouldn't trade a few basis points for the risk that an FDIC Claims Agent might find that something wasn't done just right and denies coverage beyond $100K.

I never ever will have to worry about this problem because I don't have 100k.

http://www.forbes.com/business/feeds/afx/2007/08/03/afx3984073.html
'Countrywide's improved diversification, which includes material, annuity-like income streams from banking and insurance operations, increases its earnings stability. Liquidity provided by a growing deposit base at Countrywide Bank and access to Federal Home Loan Bank advances should help the company weather current reduced liquidity in the US mortgage market
I'm sure those are all lies though.

I've pulled most of my money out of Countrywide and closed all my CDs at IndyMac. They had good rates years back, but I was lazy to deal with it until now.

Guess the main issue I have with them is that even though they have financial centers here, but they don't deal with cash/checks. Everything has to be mailed to the home office to be processed which is a hassle.

So if I wanted a check/withdraw, it needs to be mailed. So I lose interest on 3+ days of mailing time, and there's a chance it gets lost in the mail. Or ACH in/out, which also takes 2-3 days.

Also, remeber for the MMA, there's a limit of 3 checks per months, so be careful when withdrawing from your account.

Dawghead said:Dumb question - What are the implications of CFC demise if my mortgage is with them? They sell it? What if the lending market implodes on itself and there aren't many buyers?

If all hell breaks loose, what is the worst case scenario. I am not subprime.

Make no mistake, all hell is breaking loose in the mortgage markets. It's not so much a problem if you already have a loan... the problem for consumers comes in getting a new loan.

With that said, nothing will change in respect to your loan, with the very possible exception that your loan will be sold to a different company, or serviced by a different agency. Even then, they must continue to follow the rate and payment agreements in your original loan, unless the loan agreement allowed for any changes.

Of course, any change in loan ownership and servicing brings up the risk that someone will screw something up, and your payments will not be applied correctly.

As always, keep a copy of all payments sent, as well as copies of all correspondence. At the first sign of trouble, start complaining...and don't stop until it's fixed.

Thanks - That what I figured but I wasn't sure. I have to say these lending issues have made feel rather "bearish".

Just make sure all of your $ right now in any bank is insured. Countrywide might see a run on the bank soon...in any case the risk has gone up dramatically.