Taisha casseus
Case 3: Countrywide Financial
Miami Dade College- Wolfson Campus
Abstract
Countrywide Financial is the largest home loan provider in the United States. It was cofounded by Angelo Mozilo in 1969. This company used to provide home loans to minorities in the U.S. and lowered their barriers of homeownership for lower-income individuals. Countrywide provided; loan closing, capital market, insurance and banking services to their clients. In this paper, I will talk about Countrywide’s understanding subprime loans, subprime crisis, it’s involvement in the subprime crisis, its issues related to the bank of American acquisition, the Coe’s role, and its recovery.
Countrywide Financial was cofounded by Angelo Mozilo in 1969. By the 2000’s the company became the largest provider of home loans. In 1993 its loan transactions reached the $1 trillion mark. During the 1900’s Countrywide has been working hard, creating new plans helping the community. In the 1970’s Countrywide had diversified into the securities market. Countrywide created a program called “House America” which allowed more consumers to qualify for home loans and make smaller down payments, in 1992 this was established. For the new program created in 2003 called “We house America”, which has a goal of providing $1 trillion in home loans to low-income and minority borrowers by 2010. Subprime lending means to borrowers, this helped people who could not qualify for traditional loans. Subprime lending is considered risky because clients are less likely to be able to pay back their loans. The subprime loans were made for a variety of purposes, but the mortgages have gained the most news coverage. The subprime loan has three categories that they fall under, the first is interest mortgage, second allows borrowers to pay monthly and the last allows borrowers to find themselves with mortgages featuring a fixed interest rate. The subprime crisis, this tool was praised for
Miami Dade College- Wolfson Campus
Abstract
Countrywide Financial is the largest home loan provider in the United States. It was cofounded by Angelo Mozilo in 1969. This company used to provide home loans to minorities in the U.S. and lowered their barriers of homeownership for lower-income individuals. Countrywide provided; loan closing, capital market, insurance and banking services to their clients. In this paper, I will talk about Countrywide’s understanding subprime loans, subprime crisis, it’s involvement in the subprime crisis, its issues related to the bank of American acquisition, the Coe’s role, and its recovery.
Countrywide Financial was cofounded by Angelo Mozilo in 1969. By the 2000’s the company became the largest provider of home loans. In 1993 its loan transactions reached the $1 trillion mark. During the 1900’s Countrywide has been working hard, creating new plans helping the community. In the 1970’s Countrywide had diversified into the securities market. Countrywide created a program called “House America” which allowed more consumers to qualify for home loans and make smaller down payments, in 1992 this was established. For the new program created in 2003 called “We house America”, which has a goal of providing $1 trillion in home loans to low-income and minority borrowers by 2010. Subprime lending means to borrowers, this helped people who could not qualify for traditional loans. Subprime lending is considered risky because clients are less likely to be able to pay back their loans. The subprime loans were made for a variety of purposes, but the mortgages have gained the most news coverage. The subprime loan has three categories that they fall under, the first is interest mortgage, second allows borrowers to pay monthly and the last allows borrowers to find themselves with mortgages featuring a fixed interest rate. The subprime crisis, this tool was praised for