COUNTRYWIDE CREDIT EXPLORES EXPANDING STOCK.Byline: Jason Z. Cohen cohen or kohen (Hebrew: “priest”) Jewish priest descended from Zadok (a descendant of Aaron), priest at the First Temple of Jerusalem. The biblical priesthood was hereditary and male. Staff Writer Officials of Countrywide Credit Industries, the nation's largest nonbank non·bank adj. Of, relating to, or done by a business or an institution that is not a bank but performs similar services. mortgage lender, said Thursday the notion of issuing a separate stock for its online operations is just an idea. Company spokesman Mark Benhard said a statement by chief executive Angelo Mozilo that the company is considering issuing stock that tracks the performance of its online division is one of many possible options being discussed. ``It's something that (Mozilo) meant as a possibility - something that we're exploring - but there really was no timetable associated with it,'' Benhard said. Other potential ideas for increasing shareholder value include continuing the company's efforts at expanding overseas and getting into the home-equity loan Home-Equity Loan A consumer loan secured by a second mortgage, allowing home owners to borrow against their equity in the home. The loan is based on the difference between the homeowner's equity and the home's current market value. and insurance businesses, Benhard said. Mozilo's comments were reported by Bloomberg News Service on Wednesday. Benhard downplayed their significance Thursday, however. ``It's one of a number of ideas we're exploring to increase shareholder value,'' Benhard said. ``There are a number of different activities and areas we're going into to grow earnings in areas other than our core home-loan products.'' Analyst James Fowler This article is about European football player. For the Political Science professor at the University of California, San Diego, see James H. Fowler. For the Theology professor at Emory University, see James W. Fowler. of Banc of America Securities said he places little weight on the idea of creating a tracking stock. The notion probably grew out of Mozilo's exasperation over the company's stock price, he said. ``That's probably more Angelo Mozilo's frustration with the valuation of the stock than anything else,'' Fowler said. Countrywide's shares are ``extremely undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. . It would be nice if we had the valuation of some of the Internet-based companies.'' Added Benhard: ``Despite the fact Countrywide has produced record earnings for 15 straight quarters, our stock doesn't necessarily reflect that. There's a belief in the investment community that as goes interest rates, so goes mortgage companies.'' Fowler said the company has a good hedge against mortgage rate in its balance between loan origination The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. and loan servicing Loan servicing is the process by which a mortgage bank or subservicing firm collects the timely payment of interest and principal from borrowers. The level of service varies depending on the type loan and the terms negotiated between the firm and the investor seeking their services. businesses. Benhard said the balance is one of the company's main business strategies. ``We call it the macro hedge,'' he said. ``Thus far, that strategy is working beautifully.'' |
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