Countrywide Financial, co-founded in 1969 by Angelo Mozilo and David Loeb became the largest provider of home loans in the U.S., where one out of every six loans originated with Countrywide (Olster, 2010). Mozilo grew up with humble beginnings and had an unquenching desire for success. Upon creation of Countrywide, nicknamed his “baby,” he had an insatiable drive to convert the organization to the top (Olster, 2010). Unfortunately, this drive led to his eventual downfall from grace and backlash that followed.
Countrywide had numerous incentives to continue providing subprime loans. The company vision of growth created by Mozilo was beginning to become a reality and his wealth was substantially growing. By 2001, subprime loans earned Countrywide $280 million, consisting of 28 percent of its profits, whereas the year before subprime loans represented $86.9 million (Ferrell, et al, 2013). Clearly, with the fluorishing economy, the subprime market was a goldmine for Countrywide. …show more content…
C., Fraedrich, J., & Ferrell, L. (2013). Business ethics: Ethical decision making and cases [9th edition]. Mason, OH: Cengage Learning. Retrieved from https://www.betheluniversityonline.net/cps.
Johnson, C. (2010). The Foreclosure of America: The Inside Story of the Rise and Fall of Countrywide Home Loans, the Mortgage Crisis, and the Default of the American Dream. Academy Of Management Learning & Education, 9(1), 150-152. doi:10.5465/AMLE.2010.48661200
Olster, S. (2010). How the roof fell in on Countrywide. Fortune. Retrieved from
Countrywide had numerous incentives to continue providing subprime loans. The company vision of growth created by Mozilo was beginning to become a reality and his wealth was substantially growing. By 2001, subprime loans earned Countrywide $280 million, consisting of 28 percent of its profits, whereas the year before subprime loans represented $86.9 million (Ferrell, et al, 2013). Clearly, with the fluorishing economy, the subprime market was a goldmine for Countrywide. …show more content…
C., Fraedrich, J., & Ferrell, L. (2013). Business ethics: Ethical decision making and cases [9th edition]. Mason, OH: Cengage Learning. Retrieved from https://www.betheluniversityonline.net/cps.
Johnson, C. (2010). The Foreclosure of America: The Inside Story of the Rise and Fall of Countrywide Home Loans, the Mortgage Crisis, and the Default of the American Dream. Academy Of Management Learning & Education, 9(1), 150-152. doi:10.5465/AMLE.2010.48661200
Olster, S. (2010). How the roof fell in on Countrywide. Fortune. Retrieved from