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  Understanding Countrywide Home Equity Loan
 
Brief history

Countrywide is a diversified financial services company with mortgage banking at its core, founded in 1969 by two New Yorkers, Angelo Mozilo and David Loeb when they started the Countrywide Credit Industries. Expansion began in 1979, and by the next year, Countrywide had 40 offices in downtown Los Angeles, and in 1981, Countrywide Securities Corporation, a broker-dealer subsidiary that would sell securities backed by loans made was formed.

Countrywide hit the $1 billion mark in loan servicing in 1984. In 1985, Forbes Magazine listed Countrywide as one of the 200 Best Small Companies, and in 1987, Fortune Magazine's Top 100 Stocks of the Year ranked the company at 37th. During this period, Countrywide moved its headquarters to Pasadena, California.

In 1992, Countrywide launched “House America”, a formal affordable lending program, intended to reach out to minority communities, and low and moderate income citizens as a solution for homeownership. By 1995, the Consumer Markets Division was started, an approach to reach out directly to consumers. In the year that followed, Countrywide launched the Home Equity Lending Division and Full Spectrum Lending, Inc (to offer loans to borrowers with bad credit).

In 1999, CW Technology Solutions, a new subsidiary was launched with core applications for international mortgage processing operations, such as arrears systems, loan origination, servicing. Then in November 2000, another subsidiary that would serve as the European affiliate of Countrywide Securities Corporation, “Countrywide Capital Markets International, Ltd. (CCM)” was launched.

In January 2006, Countrywide was granted by Inside Mortgage Finance the status of America’s No.1 home loan lender, and by this time, Countrywide Bank had grown to become the 11th largest bank, and the fastest growing among the major banks in the United States. This is the same year in which Countrywide became the first the first mortgage lender to hit the $1 trillion mark in loan servicing.

Countrywide Home Equity Loan Programs:

• Home Equity Loan - in which principal and interest payment remains the same over the life of the loan

• Home Equity Line of Credit - Low start interest rate, then variable monthly rate based on the prime rate as published in The Wall Street Journal plus a margin or outstanding balance.

• Combining Home Equity Loans or Lines of Credit with First Mortgages – which is available on most Countrywide loan programs, featuring additional tax advantages.

• Super Streamline Home Equity Line of Credit - Benefits are similar to Home Equity Line of Credit, but with less paperwork and ready cash for those whose job and financial situation haven't changed significantly after their loans have been closed recently. You can borrow against up to 90% of your home's value.

• 125% Equity Loan - Loan amounts up to 125% of the value of the home
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