Mortgage Broker Bond - All About Countrywide Finance Corporation

By Robert A. Dallas

There comes a point in time when a situation would present itself that you would need to get additional financial aid through the form of a mortgage bond. Getting a mortgage bond with a reputable company is extremely important since it you guarantee you that you would not only be able to get the financial assistance you need. A highly reputable financial institution would provide you flexible mortgage programs which you can choose from based on your needs and ability to pay back the amount you have taken out in the form of a mortgage.

Countrywide Finance Corporation

This is the largest home mortgage creditor in the United States. About 20% of the total home mortgages in the country, which account for about 3.5% of the Gross Domestic Product of the United States, have been attributed to this firm. In July 2008, Nationwide Finance Corporation was acquired by the Bank of America.

As a finance and investment firm, it offers a number of different products and services. Some of these include Mortgage Banking services, loans, mortgage bond acquisition and mortgage processing. Apart from the United States, they also serve clients in the United Kingdom and Japan.

About Nationwide Home Mortgage Bonds

Countrywide Finance Corporation trades in the capital markets, which are institutions that provide long-term funding and financing. As such, the source of the funds of this group comes in the form of equity and bonds. State Home Mortgage Bonds which are offered by the company is responsible in order for home loans and mortgages for commercial purposes are properly managed and funded. Currently, Home Mortgage Bonds account for 60% of the total revenues earned by Nationwide Finance Corporation.

This Home Mortgage Bonds are, as of the moment, only traded with other financial institutions such as banks, insurance firms, hedge funds, investment companies and the like. It does offer a number of different commercial mortgage bonds to individual and private investors, many of which are owners of commercial properties.

Countrywide Asset Management Corporation

Home loan processing as well as other types of loans, are handled by its subsidiary company, Nationwide Asset Management Corp. Many of the loans that are handled by Asset Management Corp. are delinquent home loans which they intend to start up their home loan services. These delinquent loans were passed on to Countrywide Finance Corp through the passing of various rulings done by the Federal Housing Administration and the Veterans Administration.

Securitized Loans

One of the products offered by this group is securitized loans. Securitized loan, in reality, are delinquent loans which have been issued under the rulings of certain government agencies such as the Federal Housing Authority and the Veterans Administration. These loans are often securitized by converting these loans into mortgage bonds. In the case of Countrywide Finance Corporation, its subsidiary, Nationwide Asset Management Corp intends to securitize the delinquent loans it intends to use to start up their home loan services by converting them into Home Mortgage Bonds. Once this happens, the delinquent loans can now be traded in the secondary sector of the capital markets