The Analysis Group
The Analysis Group will be taking a look at downsizing of GM, AIG, Motorola and Country wide financial. We will work on IT strategies that help these companies with their downsizing. Downsizing is done when a company decides to reduce its workforce for reasons other than poor performances, criminal conduct or unethical behavior.
Countrywide Financial Countrywide was founded in 1969 with the commitment to break down the barriers to owning a home. Countrywide Financial is a diversified financial marketing and services holding company engaged primary in residential mortgage banking. Countrywide financial consists of the following:
Mortgage banking –in 2006 financed 20% of all mortgages in the United State .Countrywide has the market share of 3.5% of the United States GDP greater than any other single mortgage lender. The mortgage banking consists of loan production, by originating and funding new loans, loan servicing collects payment from borrowers, handles escrow accounts, tax and or insurance payments and loan closing services, real estate appraisal services, automated credit reporting products and flood determination services. (Countrywide-Financial -Corp, 2008)
Banking –operates federally and invests in mortgage loans and home equity line of credit through its mortgage banking operation.
Capital market –which operates an institutional broker-deal that trades in underwriting mortgage –backed securities .It also, has a global operation which provides mortgage loans application processing and loan servicing. (Countrywide-Financial -Corp, 2008) Countrywide had 500 billion home loans with 62,000 employees and 900 offices. Countrywide financial has been in the headlines for the past 2years, since their subprime mortgage market began to contract and mortgages default rose. Questionable business practices, complaints of customers concerning high mortgages when the buyer was not qualify to have such a high mortgage rate have led to decline in their dominance in the mortgage industry and a law suit filed by the United State Trustees because of the questionable practices in a bankruptcy case have also created problems and has tarnished their reputation. Foreclosure rates have added to their problems according to countrywide as rates rose to 0.70% from January 0.69% and Februarys 0.47% in 2006. 4.71% of countrywide loans were at least 30 days past due up from 4.29% in February of 2007.
In 2007 countrywide plans to cut 12,000 jobs, 20% of the job cuts will take place in areas most affected by lower origination volumes. These steps were taken so that countrywide can continue to be well –positioned for further success, and to remain an industry leader in delivering value and world –class service to their customers and business partners. (Countrywide Job Cuts, 2007)
Countywide financial merged with Bank of America on July 11, 2008 after months of negative publicity and six months of financial deterioration. Bank of America in June of 2008 announced that its takeover of countrywide financial corp. will result in the loss of 7,500 jobs over the next two years. Technology Countrywide is such a big company so IT has every important to them. In June 2004 chose Sysdome, Inc. an internet –based, high speed technology provider for the mortgage industry. Sysdome Third Party Review (TPR) tool allows lenders to more effectively and efficiently conduct due diligence on third parties.TPR streamlines the mortgage broker approval process, prevents fraudulent loss, reduce risk and consolidates vendor relationships for mortgage lenders (Countrywide-Financial -Corp, 2008) In January 17, 2006 country wide signed a contract with Unisys Corporation to provide IT outsourcing by allowing Unisys to enhanced efficiency, lower IT cost and provides greater competitive agility. The services that…