Countrywide - 1127 Words

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 â€Å"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 gov ernment 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 limitatio ns 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 theirShow MoreRelatedCountrywide Home Loans ( Countrywide Hl )1466 Words   |  6 PagesCountrywide Home Loans (Countrywide HL) provide, service, and sell mortgage loans and after-loan services such as collections and payment processing. As a leader in the mortgage industry, they provide these products and services to homeowners through prime and subprime mortgage loans and subsequently resell these loans to investors. In 2009, the United States (US) Treasury Department (Treasury) invested (i.e., US taxpayer-based funding) in Countrywide HL under the Treasury’s 2009 Troubled Asset ReliefRead MoreCountrywide Financial Case7873 Words   |  32 PagesQuest for Competitive Advantage, Second Edition II. Cases in Crafting and Executing Strategy 15. Countrywide Financial Corporation and the Subprime Mortgage Debacle  © The McGraw−Hill Companies, 2011 Case 15 Countrywide Financial Corporation and the Subprime Mortgage Debacle Ronald W. Eastburn Case Western Reserve University Angelo Mozilo, founder and Chairman of Countrywide Financial Corporation, was the driving force behind the company’s efforts to become the largest real estateRead MoreCountrywide Subprime Lending Crisis4911 Words   |  20 PagesExecutive Summary Even though Countrywide stopped offering subprime loans 4 months ago, the company is still in the forefront of the subprime mortgage lending and foreclosure crisis. Lawsuits seem to be coming from all directions, federal and state investigative probes are launched against them, stock price tumbled to 1/5 of its value, even desperate lenders demonstrated outside their offices. 2007 has definitely not been Countrywide s year. The company has lost its place as America s Home LenderRead MoreFinancial Analysis : Countrywide Financial Corporation1162 Words   |  5 PagesThompson A. (2011), Countrywide Financial Corporation was formed in 1969 under the leadership of Angelo Mozilo. The goal of the company was to be the largest lender for real estate loans in the United States. The strategy was successful for a few years, but was ultimately doomed for failure due to very poor business practices. The detailed strategy was for Countrywide to be involved in five different segments of the banking business. The first and most important component of Countrywide was mortgage bankingRead MoreEssay on Countrywide Financial Home Loans Failure1300 Words   |  6 Pages Countrywide Financial was cofounded by Angelo Mazilo and by the early 2000s it became the largest provider of home loans in U.S. It was also considered the main provider of home loans to minorities in U.S. because of its lower barriers regarding homeowner ship for low-income individuals. The company was well known for their services offered to their clients such as: loan closing, capital market, insurance and banking services. In 2000s the main factor that contributed to the company’s reputationRead MoreCountrywide Financial Corporation Case Study2112 Words   |  9 PagesCredit Risk: Countrywide Financial Corporation All in all, it is very true that risk are an inherent part of business. Thereby looking at the various types of risk, many entities are impacted by all types of risk. A company representative of credit risk are that I find to exhibit credit risk is Countrywide Financial Corporation. Essentially, this company displayed much credit risk especially disbursing loans at the expense of the borrowers. In general, Countrywide was known for their slick advertisingRead MoreCountrywide Financial Corporation And The Subprime Mortgage Crisis1183 Words   |  5 PagesCountrywide Financial Corporation and the Subprime Mortgage Debacle In order to discuss the financial crisis of 2008, a person must understand the history of the mortgage industry. This case study shed light on one of the leading companies in the mortgage industry, Countrywide Financial, helping people recognize the events that led up to the crisis of 2008 by providing a breakdown of the company and showing the range of their operations (Eastburn, 2010, p. 247-262). To help people understand theRead MoreFinancial Analysis And Assessment Of Countrywide Financial Corporation870 Words   |  4 Pagesprovide a financial analysis and assessment of Countrywide Financial Corporation. The financial evaluations are based on the numbers calculated from the data on Countrywide Financial Corporation’s Financial Performance Worksheets. This paper covers three areas. The first part of the paper contains a brief history of Countrywide and the position of the corporation in the market of real estate mortgage. The second part is a SWOT analysis of Countrywide s performance and the reasons for their success’sRead MoreCountrywide Financial : A Large Diversified Financial Service Provider1018 Words   |  5 Pages Countrywide Financial was a large diversified financial service provider. They operate in five business segments, those being mortgage banking, banking, capital markets, insurance, and global operations. Countrywide was the largest market share among U.S. mortgage originators before unethical actions caused the downfall of the firm. Problems in Countrywide’s loan practices were evident. After the financial crisis of 2008 Countrywide was found to be a significant contributor to the subprimeRead MoreCountrywide Financial Corporation : The American Dream For Various Individuals1709 Words   |  7 Pagesindividuals. Countrywide Financial Corporation selected strategies that would allow numerous Americans to make this dream a reality. Company analysis will reveal areas of improvement as well as issues that can th reaten the vitality of the corporation. Recommendations will provide insight into areas that could improve financial and general corporate health. Innumerable Americans have connected with Countrywide Financial Corporation at one time or another during the last forty years. Countrywide Financial