Countrywide co-founder Angelo Mozilo target of federal lawsuit
June 4, 2009 | 1:32
pm
Federal regulators filed a civil fraud lawsuit today against Countrywide Financial Corp. co-founder Angelo Mozilo and two former associates.
The Securities and Exchange Commission scheduled a news conference this afternoon in Washington to discuss the allegations against Mozilo, who founded Countrywide in 1969 and was its chief executive until Bank of America purchased it last year as its financial condition deteriorated.
The agency has been investigating whether Mozilo and others failed to inform shareholders just how lax lending standards became at the Calabasas mortgage giant as the housing boom neared its end. The SEC also is scrutinizing Mozilo's sale of hundreds of millions of dollars in stock in 2006 and 2007 as defaults mounted on the high-risk loans in which Countrywide had specialized.
-- E. Scott Reckard
I personally knew Angelo back in 1966. Angelo was owner with Mr Loeb of United Mortgagee out of Virginia Beach and Richmond, VA.
Back then they made FHA and Va loans pertty much all there was if you wanted to buy a home. For sometime they did well but being aggressive even back then they ran into trouble. United Mortgagee would give the brokers firm committments on the points it would discount the loan for the seller.
This as is now when the market ran against them forced UMC into bankruptcy. At that point they went to California and opened Countrywide.....
This is not part of the history , resume or story of Countrywide.
Posted by: eric freedlander | July 01, 2009 at 10:47 AM