ipl-logo

The Story Of Angelo Mozilo And Countrywide Financial

915 Words4 Pages

Angelo Mozilo and Countrywide Financial are not household names by any means. The story behind them played a huge role in our country's economic and housing history. The company went from nothing to worth over a billion dollars in a 40 year span. Countrywide Financial would play a role in the housing crash in 2008. Angelo Mozilo made quite the name for himself coming from a poor Italian family in the Bronx. Mozilo was born in 1938 where he was the oldest of five children. He was very involved with school and sports growing up. However, he had asthma which held him back in some aspects of life. In his teenage years, Mozilo worked in a butcher shop with his dad and attended catholic school. Angelo also began working at a mortgage company as …show more content…

They named their fresh mortgage bank company Countrywide Credit Industries. Loeb funded $350,000 while Mozilo funded $25,000 of his own money and received a $75,000 loan into the startup of Countrywide. Los Angeles is where they would open the first office. Their business model was to loan mortgages at a low cost with extremely low risk. They were able to make loans at a cheaper price because they were not taking commissions on selling mortgages. Oftentimes, they would sell their mortgages to other institutions like Fannie Mae and Freddie Mac to make additional profit. The company barely stayed afloat its first few years. Throughout the 1970s and early 80s, Countrywide would continue to gain substantial business in the single-family mortgage sector; the company added branches across California and the entire country as they grew. From a leadership perspective, Loeb was the largest owner and decision maker for the company, and avoiding risk was at the forefront of his strategy. Mozilo was involved with the sales and communication division. Mozilo’s career was flourishing in the 1990s. “In 1991, Mozilo was elected president of the Mortgage Bankers Association, which represents thousands of mortgage professionals and their firms. In 1995, he was inducted into the National Association of Home Builders Hall of Fame, and he continues to serve on the board of its National Housing Endowment Foundation. In addition, he received the Ellis Island Medal of Honor” (Honoring perseverance,integrity and excellence). He would officially become CEO of Countrywide in

Show More
Related

  • The FDIC: The Great Depression

    245 Words  | 1 Pages

    The FDIC was created in 1933 in response to the thousands of bank failures that occurred in the 1920s and early 1930s. The FDIC was a provision of the Glass-Steagall Act. During the nine year period from 1921-1929 more than 600 banks failed each year. The failed banks were small banks operating in the rural suburban areas and held the deposits of mostly farmers and blue collar folks. When banks fold and continue to do so, people will start to worry about their money in any bank.

    Read More

  • Todd Lubar Case Analysis

    391 Words  | 2 Pages

    The mortgage banking business enabled Todd to create connection with First Magnus Corporation-the largest privately owned mortgage companies in the United States. He later increased his access to capital and expand his operations by opening a charter funding in year 2003- a First Magnus subsidiary. Todd Lubar was familiar in his niche market having worked with more than 7,000 clients who had tried to acquire finance from other traditional means but had failed. Through his confidence, understanding and the overall knowledge to analyze risks, he found the need to develop Legendary Financial that was meant to fill that gap.

    Read More

  • Brett Popplewell The Big Smoke Summary

    348 Words  | 2 Pages

    His prime example of the success that the company will get are the millions of dollars

    Read More

  • Xacc 280 Week 1 Case Study Of Magnises

    502 Words  | 3 Pages

    The other investors include former chairman of MasterCard Lance Weaver and former President and CEO of Def Jam Kevin Liles. McFarland is also the founder and CEO of Site Spling, a fast growing content sharing website. The company has already roped in a number of high profile clients including the New York City based media conglomerate, NBC Universal Studios and mass media company Discovery Communications, Inc. The startup whiz according to Dujuor Magazine began establishing startup technology companies while still a student at Bucknell University in Pennsylvania, where he studies computer engineering, albeit

    Read More

  • How Did Truett Cathy Change America

    1536 Words  | 7 Pages

    Another thing that makes him stand out is when he opens a restaurant he makes sure it is running well before he leaves and opens another one. Truett only opens about seventy a year. They never offer stock to their employees. Truett said if he did and the employees didn’t get the expected amount he would feel obliged to make up the money to the stock holders.

    Read More

  • Comparing The Pardoner's Tale And The 2008 Financial Crisis

    566 Words  | 3 Pages

    Eventually, the government-backed insurance was all but depleted, resulting in a housing bubble burst and financial crisis of 2008. Lastly, investors are the third key figure, as they bundled these loans into investment securities. In their scheme to bundle as many loans as possible, they encouraged lenders to further lower their standards for both loans and documentation

    Read More

  • Great Depression Dbq

    666 Words  | 3 Pages

    Crop prices became too low for farmers to pay off their land, causing it to be mortgaged. They became plagued with debt, while small banks, especially those that were associated with the agricultural economy, remained under constant pressure in the 1920s as their customers continued to fail their monetary legal obligations (default on loans). This caused many small banks to fail. Larger banks were also majorly affected as well; some of the country’s largest and most powerful banks were investing carelessly in the stock market and giving out imprudent loans. After investors began to speculate rashly and buying stocks on margin, the stock market crash after massive sell-offs began, causing all these banks to suffer immense losses that were greater than the amount they could take

    Read More

  • Why I Recruit Luciano Research Paper

    272 Words  | 2 Pages

    I Recruit Luciano was born and raised in Brooklyn, New York on November 4th 1983. I am currently 33 years of age. I am the youngest and only male out of three children. My father was born in Puerto Rico and my mother was born in Manhattan, but she is also of Puerto Rican decent. At the age of thirteen, my parents moved us to New Jersey.

    Read More

  • Fahrenheit 9/11 Persuasion

    1052 Words  | 5 Pages

    One of the shares that was owned by the group was United Defense, which was a huge defense contractor. This meant that when 9/11 happened, the stock rose due to the new contracts. Having the

    Read More

  • The Organizational Structure Of Bank Of America

    850 Words  | 4 Pages

    Organizational Structure Bank of America is an American financial services corporation and is the second largest bank holding organization by assets, in the United States. The headquarter of the financial organization is situated in Charlotte, North Carolina. The bank has approximately 5,700 retail banking offices and 17,250 ATMs in the United States. The online banking system of the bank has more than 30 million active users.

    Read More

  • Summary Of Meet You In Hell

    1082 Words  | 5 Pages

    He used that experience to for his later achievements and started to make investments. With all of the earnings he had made being the head of the company, he

    Read More

  • Finance Case Study: The Wilkerson Company

    895 Words  | 4 Pages

    Abstract The Wilkerson Company started facing declination in profits due to the price cutting on their pumps. On the contrary, while the price pumps were decreasing to record numbers, the flow controllers, which controlled the rate and direction flow of chemicals, could increase its prices without significant loss or any competitive response. Wilkerson, his controller, and manufacturing manager developed an activity-based cost model (ABC) to better comprehend the various demands that each product line makes on the organization 's indirect and support resources. Exhibit 1 showed us our operating results, Exhibit 2 showed us our product profitability analysis, Exhibit 3 displayed our product data, and Exhibit 4 was a compilation of the monthly

    Read More

  • Lehman Brothers: Financial Fraud In 2008

    2178 Words  | 9 Pages

    Pressure Lehman Brothers was one of the largest investment banks in the world, so expectation and pressures of reporting positive financial results that apply to a bank of that magnitude are intense. Were a bank of this size to have a poor reporting period it would have a significant impact on its quoted share price. In the years leading up to 2008, Lehman Brothers invested heavily in the US sub-prime mortgage market. Were they lent large sums of money to individuals with the purpose of becoming homeowners, it was seen as a quick way of making money as they would group a lot of the mortgages together, sell them on to other banks and make a profit.

    Read More

  • Organizational Behavior In The Wolf Of Wall Street

    1586 Words  | 7 Pages

    “Good units walk a thin line between indiscipline and ineffectiveness. Ignore the rules too often and you’ve got a mob, but enforce the rules too strictly and you’ve got a herd.” by Henry V. O’Neil represents the notion behind an effective organizational behavior. In an organizational settings, how well the employees are managed and understood depends on the leadership style exhibited by the leaders. Finding the right balance between being too strict or too easy with the employees not only create an ideal work environment but also increase productivity and reduce employee turnover.

    Read More

  • Bill Gates Case Study: Bill And Melinda Gates

    1214 Words  | 5 Pages

    Case Study – Bill and Melinda Gates 1. What do you think Bill and Melinda Gate’s personality traits are for each of the Big Five dimensions? Compare the two. The purpose of big five is to categorize the personality traits into different dimensions which can help us to understand better how people behave to others and how react in their life.

    Read More

More about The Story Of Angelo Mozilo And Countrywide Financial

Open Document