Countrywide: Predatory Lending and Largest Mortgage Lender Essay

Submitted By ferlgates
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Module 7: Countrywide It is no secret too anyone that in the last 5 years, the American way of living as we once knew it has been crushed. Our economy crashed and some experts still seem to think that have yet to hit rock bottom in this financial crisis. A significant factor in the economy crashing was the housing industry falling apart. With Countrywide being the nation’s largest mortgage lender, they played a vital role in the displacement of mortgages that were likely to become default. In this paper, I will look at some of the roles that Countrywide played and how they added to the worst economic times since the Great Depression. First, we need to look at the housing bubble and when it started. The housing market started to boom in 1996. Around the time that 2000 came, the industry was at full speed and appeared to show no signs of slowing down. Like mentioned earlier, Countrywide was the largest lender in mortgage backed security loans. The company was actually founded in 1969 and their goal was to become the largest real estate mortgage lending firm. They in fact accomplished this by mid 1980’s. By 2000, they had over 500 billion in loans and assets over 200 billion. Their financial success would be short lived after the bubble. Their shortcomings were made evident in the mid 2000s when the market began to crash. They had practiced faulty lending procedures by approving unsatisfactory loans. Their predatory loan methods were targeted at borrowers who were given
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