Countrywide Home Loans ( Countrywide Hl )

At the company’s inception, Countrywide Financial Corporation’s founders had a broad vision for the mortgage company (Eastburn, R., 2010). Even though Countrywide Financial Corporation started out as a small operation, within a few years, it began to flourish (Eastburn, R., 2010). The founders had a plan to expand Countrywide past the competition. Not only would Countrywide operate local offices, similarly as other mortgage lenders, but also Countrywide would expand to cover the nation (Eastburn, R., 2010).

Now onto the HOLC- Homeowners Loan Corporation. The idea of the HOLC was to guarantee a safety net to homebuyers. The HOLC created a national standard for appraising the value of real estate and it decided the value of all types of properties- single family homes, empty lots, large estates, etc. However, this proved to be a dangerous venture because it often took ideas from social divisions to determine appraisals. Property values were linked to the race, religion, and ethnicity of the community’s inhabitants. As a result, The HOLC did not offer loan assistance to most African Americans, Jews, and other immigrants. Therefore, they deprived many of the opportunity to own property- an essential part in the American Dream. The HOLC set a dangerous precedent for the future of

The company has lost its place as America 's Home Lender and has been quoted by few as America 's Home Wrecker.

Countrywide, co-founded in 1969 by Angela Mozillo had become the largest home loan provider in the U.S. with decades (Ferrell, Fraedrich, & Ferrell, 2013). During the 90’s, Countrywide’s loans reached $1 trillion and were known as the number one loan provider that help qualify people with low incomes to purchase a home. Countrywide also created a program called ‘House America” which was to assist people to get a home with lower down payments. By the year 2000, Countrywide provided one in six of the loans provided to consumers in the U.S. During 2003, Countrywide had formed another program called ”We House America”, which was put in place for low-income consumers as well as the minority consumer. Countrywide goal for the program was to provide

Countrywide is a company that was known as one of the largest mortgage lenders in the country. The only way Countrywide could stay competitive, as the housing bubble grew, was to create an offer that the borrowers could not turn down. The offer allowed the borrowers choose how much they wanted to pay each month for their loan. Eventually, that was not enough to keep them competitive, and the firm had to create another option. Soon they were giving loans with no money down. The company eventually was not making most of their money from these loans and started to sink and Mozilo knew it. Over a five-year period, 2001 to 2006, he managed to arrange for himself to make $470 million compensation by looting the company he

In 2008, Bank of America purchased Countrywide Financial, a mortgage lender based in California. Shortly after this acquisition, information came out that employee Rene Rebollo had slowly been downloading information about clients onto thumb drives and selling them to other mortgage companies’ employees. Information stolen included customer files, many with social security numbers and other personal forms of identification (Reckard 2011). Millions of customers were compromised in this breach, and the costs for Bank of America and Rebollo were high.

Cornerstone Home Lending, Inc. was incorporated on July 2, 1986 in the State of Texas and became licensed as a money broker in the State of North Dakota on October 08, 2010. The Licensee is a S-Corporation headquartered in Houston, Texas. Cornerstone Home Lending, Inc. operates primarily through retail production branches and various affiliates, which originate residential mortgages in numerous states. Through its wholly owned subsidiary, Cornerstone Mortgage Partners, LLC, the Licensee holds controlling interest in four joint ventures, Ameriland Funding, LLC, Ascent Home Lending, LLC, Group Mortgage, LLC and Priority Home Lending, LLC. The Licensee is owned by Ann Laird (27.47%), Judith Belanger (8.86%) the remainder of shares are held by various entities and individuals.

Household International: Lends money to consumers for periods ranging from several months to several years.

LOL Incorporated was established in August 3, 2000 in the State of Minnesota and became licensed as a money broker in the State of North Dakota on October 19, 2015. The Licensee is a full-service mortgage broker providing residential home financing. The Licensee conducts in business in Minnesota, Wisconsin and North Dakota and is headquarter in Golden Valley, Minnesota with 2 branch offices located in Minnesota. The Licensee is owned by David Lozinski (76.3%), Stephanie Hubbard (10%), John Monto (6.5%), Catherine Hartnett (6.5%) and Patricia deJager-Glewwe (0.7%)

The dolors in this situation were the mortgage bankers/companies, the people borrowing money who defaulted, the United States government, and the tax payers in the United States. The mortgage bankers/companies benefited from this for a while, but also lost when people defaulted on loans and house prices dropped. The people borrowing money who defaulted are dolors because they ended up losing their homes and ruining their credit. The United States government and tax payers are dolors because when financial institutions went under and bail-outs were given that money came from the government, which in turn came from the taxpayers.

Countrywide’s tactics often led borrowers to expensive and sometimes unfavorable loans that resulted in richer commissions for Countrywide’s sales forces, fees to company affiliates providing services on the loans, and a roaring stock price that made Countrywide executives among the highest paid in America. Countrywide’s entire operation, from its computer system to its incentive pay structure and financing arrangements, was intended to wring maximum profits out of the mortgage lending boom no matter what it cost borrowers (Morgenson, 2007).

Angelo Mozilo, founder and Chairman of Countrywide Financial Corporation, was the driving force behind the company’s efforts to become the largest real estate mortgage originator in the United States and, according to some, was also the driving force behind the company’s eventual collapse. Mozilo and partner, David Loeb, founded Countrywide in

In 2001, the Tulsa, Oklahoma, Williams Company was in financial distress. The primarily energy-industry company was struggling with a shrinking energy trading market, which was marked by distressed entities such as Enron’s broadband unit and Global Crossing. Williams also suffered internally with a floundering telecommunications division and a plummeting stock price. These issues led credit rating agencies Moody’s and

New Century Financial Corporation was founded in 1995 went public in 1996 and was also listed on NASDAQ. New Century’s primary goal was to originate and sell subprime mortgages. The main activities of the company included generating, retaining, selling, and servicing home mortgage loans for subprime borrowers who couldn’t get finance from other sources. By 2006 New Century expanded its product range to include fixed-rate mortgages, adjustable rate mortgages (ARMs), hybrid mortgages, and interest-only (IO) mortgages. The products were from the two Company’s

In 1994, Richard S. Fuld took control of Lehman Brothers as its Chief Executive Officer (CEO). Under Fuld’s aggressive leadership, the company flourished and became one of the largest investment banks in the United States. （Crossley-Holland 2009) reported that in 1994, each Lehman Brothers stock was averaging at $4 and by 2007 it catapulted to $82 creating a 20 fold increase. From 1994, Lehman Brothers gradually adopted an aggressive growth business strategy by expanding into highly complex and risky products such as Credit Default Swaps (CDS) and Mortgage-Backed Securities (MBS). By 2007, Lehman Brothers was the biggest underwriter of mortgage-backed securities of the U.S. real estate market.