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15 Feb 2012 21:56

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Politics: Ex-Countrywide head Angelo Mozilo summoned by Rep. Darrell Issa

  • F.O.A. The above stands for “Friend of Angelo,” the internal designation formerly used by Countrywide Financial to specify people who, some of them public figures, were to be given deluxe mortgage rates, so named for then-Countrywide top-dog Angelo Mozilo.
  • Rep. Issa The head of House Oversight, Rep. Darrell Issa has requested an interview with Mozilo, on such loans given to public officials (current Reps. McKeon, Session, Towns, and Gallegly) — Congress isn’t allowed to accept publicly unavailable financial perks. source
Posted by Chris Tognotti • 0 Comments • Permalink

22 Dec 2011 01:03

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U.S.: Countrywide will pay massive settlement over subprime crisis

  • $335 million settlement over discrimination charges source
  • » They allegedly steered minorities towards bad mortgages. The company, something of the focal point of the subprime housing scandal, now has to face the music. Bank of America, the parent of Countrywide Financial, had to settle claims from before it purchased the company, a four-year period during the housing boom when loans were handed out very easily. In the case of Countrywide, however, there is evidence that while white homeowners got offered normal mortgage, black or Latino homeowners of similar stature received a subprime mortgage instead, meaning that they were given higher interest rates and unfavorable terms for loans, making it easier to default. As part of the settlement with the Justice Department, the company denied the charges, while Bank of America distanced itself from the housing-boom-era actions
Posted by Ernie Smith • 0 Comments • Permalink

08 Aug 2011 11:10

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Biz: AIG sues Bank of America claiming they got massively defrauded

  • Defendants were engaged in a massive scheme to manipulate and deceive investors, like AIG, who had no alternative but to rely on the lies and omissions made.
  • A legal complaint filed by AIG • Revealing that the company, which still has a freaking massive taxpayer bill to pay off, plans to sue Bank of America for $10 billion dollars, claiming “massive fraud” on the mortgage debt AIG insured while the companies Countrywide and Merrill Lynch were still independent. (To put it simply, AIG feels that the companies lied about the quality of the debt, making them sound better than it was.) AIG is still working on paying back roughly $182.3 billion in bailouts, so the $10 billion would help. source
Posted by Ernie Smith • 0 Comments • Permalink

22 Jan 2011 10:53

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Biz: Bank of America takes epic charge on its hot mortgage mess

  • $2.24
    billion     the amount the bailed-out Bank of America lost in 2010, hurt by charges due to their Countrywide merger
  • $4.1
    billion     the size of the charge they had to take for investors with claims against their mortgage securities  source
  • » Why such a big charge? Apparently, someone at Bank of America (or Countrywide) was really bad at doing paperwork, or was trying to push through half-baked mortgages. Because both were named as factors in creating the huge charges which resulted from investors making claims against them. Most of the fees are headed to Fannie Mae and Freddie Mac, by the way. Had this charge (and a separate $2 billion goodwill charge related to the Countrywide merger) not been there, Bank of America would’ve been profitable in the fourth quarter.
Posted by Ernie Smith • 0 Comments • Permalink

15 Oct 2010 20:46

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Biz: Countrywide’s former CEO nailed with massive fine by SEC

  • You know Countrywide? Of course you do, if you have any knowledge of big evil companies that screwed millions of good people by convincing them to get into subprime mortgages. Before the proverbial doo-doo hit the fan, the company’s former CEO, Angelo Mozilo, cashed out big time, using his insider knowledge to ensure a big payday. Now, a couple years after the fact, the SEC twisted his arm until he agreed to forfeit a bunch of that money. The details:
  • $140 million in stock sold, based on insider information
  • $22.5
    million     the size of the fine Mozilo will have to pay to settle securities fraud charges
  • $45 million the amount Mozilo will have to give back due to the charges source
Posted by Ernie Smith • 0 Comments • Permalink

05 Jun 2009 02:15

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Biz: Why former Countrywide CEO Angelo Mozilo is a bad, bad man

  • $387 million Amount Angelo Mozilo made as Countrywide CEO between 2002 and 2006. He co-founded the company in 1969 and was seen as a rags-to-riches story. source
Posted by Ernie Smith • 0 Comments • Permalink

04 Mar 2009 10:22

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Biz: Once part of the housing problem, now part of the solution?

  • It is very important to the entire team here to be part of a solution.
  • Stanford L. Kurland • Former president of Countrywide, a company synonymous with the housing crisis, on his new venture, PennyMac. PennyMac buys back delinquent mortgages and resells them. While some homeowners claim to be helped, some critics claim it’s like an arsonist who sets fire to the home, “then buys up the charred remains and resells it.” • source
Posted by Ernie Smith • 0 Comments • Permalink
 
 
 
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