Country Wide Case Analysis

To: Sheri Jones From: Joseph Pilefsky Re: Subprime Mortgage Debacle CC: All germane(predicate) Personnel Introduction countrywide Financial Corporation was founded in 1969. The regular is a argot that helps masses and businesses finance acquire a home or an office building. The secure beginning opened a weapon in California in 1974 and by 1980, the plastered had 40 offices in eight states. The placement had originated more than 2.2 million loans which come $408 billion. The firm is in the butt against of being acquired by rim of America. The firm has been subject to incorrect publicity as sanitary because of the bad business practices. The scrimping is crisis and the camber cannot lend specie to light credit flowing. The firm straightway has a bad image. This memo will address how the firm will pay off its name. Current Situation The firm has had a typesetters case filed against it by the Securities and transfigure Commission and the charges take insid er trading and genteel fraud. The list of people in the lawsuit include the founder of the firm, Angelo R. Mozilo. The former chairman of the company, David Sambol, is besides a defendant in the lawsuit. The former promontory financial officer, Eric Sieracki, is named as a defendant in the lawsuit. Mozilo hold to repay $45 million that illegitimately earned and also he concord to repay $22.

5 million in civil penalties. In 2010, the firm had to repay $108 million in federal charges that the firm overcharged customers that were struggling to pay their mortgages as a turn up of the housing decline and the economic crisis. In the early 1 970s, in that location were activist groups! that stated that the organization was biased in contribute minorities money to purchase homes in decent neighborhoods. In the middle 2000s, banks including Countrywide financial were lending consumers money to demoralize homes that they knew they could not afford to pay their monthly mortgage payments. In 2007, the U.S. economy began to weaken, which had caused home prices to decline sharply. The firm had suffered the...If you want to get a full essay, order it on our website: BestEssayCheap.com

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