They may be the nations largest mortgage lender, but that doesn’t mean that countrywide is immune from problems. By now we all know about the Sub Prime Meltdown and the apparent bursting of the Housing Bubble—every time I turn around someone is asking me about what to expect and how we got into this mess. Well, that is another story all together, and perhaps some time I will write my thoughts (HINT: Stop Blaming the Loan Officers for bad loans—if your loan rep didn’t give it to you someone else would have). What caught my attention today was the article on www.cnnmoney.com about Countrywide and their new PR campaign.
Countrywide has probably been hit the hardest with negative perceptions. Everyone in the mortgage industry, me included, has wondered aloud if Countrywide will survive. Well, apparently they are tired of everyone looking for their weaknesses. I, for one, am excited to see what kind of spin they put on the current mortgage environment. It isn’t the fault of anyone at Countrywide that home values have soared and fallen, nor is it the fault of anyone at Countrywide investors on the secondary market have slowed in the purchase of mortgage notes.
But you can’t tell me that Countrywide didn’t at least suspect something. When you are the biggest in your industry chances are you have as good an idea as anyone as to what is happening, and what to expect. The question I would like to ask someone in the Higher-ups at Countrywide is this: If you knew what was happening, why did you continue with your own loose lending practices—which, by the way, the majority of “wholesale” lenders follow like gospel—instead of trying to remedy the problems, or at least warn someone?
For those who don’t think they had some idea, why in the world would Countrywide Chairman and CEO Angelo Mozilo cash in $138 million in stock options over the last year—Before the collapse?
Maybe this can be added to the “I’m not saying . . . I’m just saying file.”
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