Countrywide

About Countrywide

Countrywide Financial, the largest mortgage lender in the US, was acquired by Bank of America in January 2008 for 4 billion. Countrywide had originated millions of subprime mortgages with loose underwriting standards. CEO Angelo Mozilo was charged with securities fraud for selling 400 million in stock while promoting the company. Mozilo settled with the SEC for 67.5 million. Bank of America has faced over 50 billion in legal costs and settlements related to Countrywide mortgages. Countrywide was notorious for NINJA loans, no income no job no assets, and for encouraging appraisers to inflate property values. The Bank of America acquisition was described as the worst deal in banking history. Countrywide demonstrated how predatory lending practices contributed to the housing bubble and financial crisis.