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Countrywide Financial


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Angelo Mozilo, founder and Chairman of Countrywide Financial Corporation, the driving force behind the company’s zeal to become the largest real estate mortgage originator in the United States. The same zeal leads to the company’s collapse and led to an extraordinary collapse of the US housing market.
Mozilo and partner, David Loeb, founded Countrywide in 1969 in New York with the strategic intent of creating a nationwide mortgage-lending firm. The company opened a retail branch in California in 1974 and, by 1980, had 40 offices in eight states.
In 1981, the pair launched a securities subsidiary, which would, specialized in the sale of mortgage-backed securities (MBSs). By 1985, Countrywide’s annual loan productions topped d $1 billion. This all took place on the backs of a booming U.S. housing market bubble which began in 1994 and ended in 2006. By the time of David Loeb’s death in 2003, the company’s annual mortgage originations reached to more than 2.5 million.
The company’s financial services division originated more than 2.2 million loans totaling $408 billion by 2006. By 2007, the company had 661 branches in 48 states. Bank of America purchased the company in July of 2008 in a $4 billion all-stock transaction.
How It All Started
Because we live in a capitalist society, money is the driving force behind all of our daily living activities. Without money, it would be difficult to purchase much needed necessities such as food and clothes. One of the main necessities is the need for shelter. There are those who worked in the housing industry who sought to devise away make money while trying to provide the American dream to those who could not afford it. The financial industry so the earning potential of companies in the mortgage industry and decided to jump on the bandwagon.
This was due to the high demand for housing. From 2003 to 2006, American lenders

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