The slowdown in loan originations (with rates rising) should impact the bottomline negatively and they may have to downsize somewhat, but crash and burn? Why? I don't know much about Countrywide, but I doubt they service many (if any) of the loans they originate, but rather bundle them for resale on the open market. It is the servicers that buy these loans for their portfolios that may be in danger of a crash-and-burn, IMO.
EDIT: Just read the full article you posted, and I see they are also servicing loans. That ain't too bright at this point, but since they have been quite successful so far, I can't help but wonder what they know (or think they know) that we don't? Maybe they figure they'll build a large inventory of homes they take through foreclosure, rent them out, and sit on them until the next housing boom materializes. Better yet, maybe they figure they'll sell them to all those foreigners looking to own a piece of the American pie. LOL
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