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Countrywide was founded in 1969 and was one of the nation’s largest mortgage lenders. It used to hold about 17% of all United State’s mortgage and was listed as #91 among Fortune 500 companies. I chose the case study of Countrywide because it reminds me of the powerful era of the mortgage industry and how it collapsed leading to the chain reaction of economic and financial crisis; creating almost depression symptoms in the housing market, and pushing the economy to the edge of recession. Countrywide was not the only mortgage company that seeked for continuous profits. There were other giants like Fannie Mae and Freddie Mac that were successful in creating “liar loan” while overlooking the corporate social responsibility. It seems like the…show more content…
Once upon a time, Countrywide was the nation’s largest mortgage lender; and today it is an embarrassment that even the remains of the name of the company has died out. After all the government bail- out plans to help the mortgage industry, financial services and the overall economy, the U.S. economy is experiencing recession with no significant improvement in real estate business. So what are the significant issues that remain unresolved? I believe that we have witnessed the collapse of the housing market which has lead to disastrous outcomes. But, who is to be blamed? While accusing and pointing a finger to the giant mortgage industries, we often forget that the other four fingers are pointing back to ourselves. Are we so naive to keep blaming only to the financial and mortgage industries (sellers)? My understanding is that the sellers deal is only as good as the buyer is willing to pay the price for it. Getting carried away to live the American dreams with limited earnings is a weakness that every human being is living with. We cannot just blame the corporations for strategizing to make profits, we as consumers have to make smart choices by knowing our limitations on expenditures as well. If we are busy accusing companies for making unethical decisions, let us not make the same mistake by choosing to buy their services and products, let us question their
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