Financial Loss

countrywide Financial Debacle countrywide Financial tidy sum was a owe lending giant founded by Angelo Mozilo and David Loeb in 1969. With a long accounting, it was at the height of its success during the mortgage shoot from 1994 2006. The mortgage debacle began in 2007 and drastically departd the incoming of Countrywide Financial. Many issues related to Countrywides patronage practices resulted in the companys failure as sanitary as the sub vizor mortgage market collapse as a whole. Countrywide had an extreme change in its business outline as the housing market changed from 1994 through 2008. It went from providing mainly prime mortgages okay with high underwriting standards to a relaxed environment of little documentation and spoiled business practices. The main issue for Countrywide was this melodramatic change in st judgegy that did not adequately label the insecurity associated with its business practices and turned a blind marrow to unethical business behavio r. Relaxed underwriting standards that did not require customers to verify income or go through a full credit history throw were the beginning of the markets problems. Countrywide al misfortunateed customers to be O.K. for a bestow they could not realistically afford or have loans on multiple stems at one season that they could not adequately cover.

Adjustable rate mortgages that increased after(prenominal) the initial low interest rate period allowed customers to buy phratrys they would never be able to pay for. Many customers had plotted on flipping the main office or counted on the home apprise increasin g affluent that they could sell the home be! fore the rate increased to a point they could no longer afford. In 2004 Countrywide greatly increased the amount of subprime loans and no-down-payment loans. Customers could purchase a home with no down payment and also fuck off a home equity loan for 20% of the homes value. This resulted in inadequate collateral for these types of loans that were depending on the value of the home to increase. Once...If you extremity to get a full essay, station it on our website: OrderCustomPaper.com

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