Angelo Mozilo, the former co-founder, chairman, and CEO of Countrywide Financial Corporation, passed away at the age of 84. Born in New York City in 1939, Mozilo was of Italian-American heritage. He began his career in the mortgage industry, working for a Manhattan mortgage lender while attending Fordham University. In 1969, Mozilo co-founded Countrywide Credit Industries, which later became Countrywide Financial Corporation.
Under Mozilo’s leadership, Countrywide experienced significant growth and became the largest mortgage lender in the United States. Mozilo was known for his hands-on management style, willingness to take risks, and high expectations for his employees. He played a pivotal role in expanding the company’s loan offerings, utilizing innovative technologies, and diversifying its financial services.
However, Countrywide’s success was marred by its involvement in subprime lending, offering mortgages to borrowers with poor credit histories. The company’s practices, along with the broader housing market collapse, contributed to the 2008 financial crisis. Mozilo faced criticism and became a public face of the crisis. Time magazine named him one of the “25 People to Blame” for the financial meltdown.
In 2008, Countrywide faced financial difficulties and was sold to Bank of America. Mozilo’s tenure as CEO came to an end, and the sale was later viewed as a costly mistake for Bank of America, leading to regulatory probes and litigation tied to Countrywide.
Mozilo’s management style emphasized underwriting standards and a commitment to reducing barriers to homeownership. He believed in the American dream of homeownership and received recognition for his contributions to the housing industry. However, his legacy is also associated with the subprime mortgage crisis and the controversies surrounding his actions.
Following his retirement, Mozilo faced legal troubles related to insider trading and securities fraud. He settled with the Securities and Exchange Commission (SEC) in 2010, agreeing to repay ill-gotten profits and accepting a lifetime ban from serving as an officer or director of any public company. Criminal charges against him were dropped, and subsequent attempts to build a civil case also ended without charges.
Angelo Mozilo’s career and the rise and fall of Countrywide Financial Corporation serve as a reminder of the complexities and challenges of the mortgage industry and the repercussions of the 2008 financial crisis. His passing marks the end of a chapter in the history of American finance, leaving behind a legacy that includes both achievements and controversies.