Countrywide CEO Disgusted By His Customers

Accidental email shows how he really feels

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There are lots of rules for being a decent person. None of them apply to banking, as we’ve seen again and again lately. But you’d think a certain level of smarts would accompany the lack of decency required to run a banking institution, and that level of smarts would include an understanding that when your house is on fire, you don’t piss on the firemen.

For example, if the American people just shelled out $85 billion to save your crooked butt so you don’t drag everybody else down with you, lying low for a while in feigned humility and embarrassment is a better idea than gathering up the boys for a few hundred thousand dollars worth of pedicures and margaritas in a phew-that-was-close party while changing the company initials to stand for “Ain’t Insurance Grand?”

Some hint of remorse and/or gratitude would be good, don’t you think?

Or, if you run one of the biggest predatory lending outfits in the country into the ground and have to rely on Bank of America to bail you out, it’s best not to go on record sneering at your victims’ cries for help. Better advice: If you absolutely must create a document deriding your snookered customers as “disgusting,” be sure you hit the “Forward” button in your email and not “Reply.”

Countrywide CEO Disgusted By His Customers The Consumerist and the LA Times have reported on an email exchange posted by a man named Dan Bailey in a forum at LoanSafe.org, a site dedicated to helping people in mortgage trouble better negotiate with banks. Bailey sent a letter to Countrywide hoping the bank would adjust his adjustable rate mortgage back to where he could afford it, rather than letting it foreclose. He received this reply from Countrywide CEO Angelo Mozilo, which was obviously intended for someone internally:

This is unbelievable. Most of these letters now have the same wording. Obviously they are being counseled by some other person or by the internet. Disgusting.

Yes, the little people are having to ask the internet for help dealing with crooks. That is disgusting, but in a much different way than Mozilo meant.  

It’s one thing to give sweetheart deals to “Friends of Angelo” while baiting and switching those with more hope than money—people sort of expect a banker to be crooked—but it’s another to sneer at the poor soon-to-be-on-the-street saps as your own fiscal irresponsibility earns you an investigation, public scorn, and likely as not a smaller house than before. Sure, you’ve got friends on Wall Street and in Washington willing to lend a fresh-mint-smelling, not-invisible hand—but we suppose switching those adjustable rate mortgages over to fixed rates is just out of the question, right?

So after being Mr. Potter to every George (Dan) Bailey in the land, you expect George Bailey and the whole town now to come to your rescue, huh? If that’s not disgusting, I don’t know what is.  



Countrywide CEO Disgusted By His Customers
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  • http://www.Tribal-Sports-Wear.net Wholesale T-Shirts & Blank Apparel Club

    Well isn’t that just the cherry on top..

    It’s funny that this story pops up, I just saw a story on the News tonight, about a women who is in the same problem as so many others in our country. She has a mortgage and was doing just fine, until all this stuff started. Up until recently she was facing foreclosure, just like all the others, and about to lose her home. Recently the bank decided that the 7.4% rate she was paying was the problem, and they adjusted it down to 4.8% or something like that. Now her payment is $1,200.00 + lower per month than what it was before, and guess what? She can pay her mortgage now, the bank doesn’t have to foreclose and the bank is still making money on the loan. So what I don’t understand, if the current economic problem is basically the banks are going under due to the foreclosures on home loans that people can’t pay and the banks can’t sell the houses because no one is buying. Then why don’t they just do what they did for the women in the news story, for all the other foreclosures??? They would then have payments coming in on all those foreclosing loans, they wouldn’t have the expense of the foreclosures and resell and most importantly, the Taxpayers wouldn’t have to bail them out with 700 billion dollars!!

    This entire economic mess can truely be summed up with one word,


    Now that’s DISGUSTING Mr. Banker!


    • cj

      i had a loan that was a interest only loan, so i thought ,but it was a arm loan and to be honest i was not told that and before i new it i was owning alot more money on my loan. so i did call countrywide and was put on a modfied program were they gave me a great interest rate,fixed BUTmy payments went up 600.00 a months and now i am really struggling to make ends meets. hoping to find a way to get my payment lowered and keep my intrest rate. I really don’t want to lose my home.

      • Cr8_Wlth

        What a mortgage company can do to your loan depends on who the investor is and the type of loan a borrower has. Most likely the reason why it went up thats much was becuase your new pmnt now is fully armotirized(Principal+Intrest+ or Escrow)  so you can pay down on the Principal balance. What I also know is that to PRE_QUILIFY for any type of workout options you have to show your hardship has been resovled or that you re able to afford your current pmnt. So if you have an arm at a 5% intro intrest rate and you adj to a 6.5 and that caused you to be in a hardship then yes most likely they will help you out by giving you a int rate freeze at your intro rate. But if you show that you cannot make your pmnt and are negative(short) each month on money then they will talk to you about liquidating the property before you become delinquent and fall in foreclosure/Yes i know its tough but they can’t help everybody!!! I suggent if you know you cannot afford the pmnt and will become delinquent then think about renting out your property  and move into a fam member’s home or rent an apartment till you can refi out of the loan you have or sell the property when it has equity so you can buy another one. MOst people dont want to sell their home becuase the value is not there and they will have to do a short sale or a deed in luie.

  • Guest


     what a complete jerk!!

  • Susan

    First of all that email is old news. Can you not come up with something better?

    Secondly, I myself an in an ARM loan, but I READ all of my loan documents before I signed them. At what point will we put the blame onto whom it really needs to go? Reading is a wonderful thing folks. You can read and if you did not take the time to read your documents then you got what you deserved. No one twisted you arms or held a gun to your head and forced you to sign a legally binding contract. You did it of your own free will.

    Thirdly, if you are short on money then you need to take a 2nd or a 3rd job to meet your obligations. I work 50 hrs a week at my reg job and then I work on Sundays part time at another so that I can pay my bills.

    Give me one good reason why my taxes need to go towards helping you stay in your house? If you can not afford it then move into an apartment.


    • LMcK

      Amen.  Why would anyone sign their closing documents without reading??? In addition, the reason lenders use third party attorneys to close the mortgages is so that there is no conflict of interest.  The closing attorney goes through each closing document in detail.  If the borrower signs it that would indicate to me that they are in agreement.  The excuse of not knowing what they signed simply doesn’t hold water.  This coming from a 4th time home buyer.  If you’re not intelligent enough to read your closing documents perhaps you are not intelligent enough to own the home. 

  • Grace

    This person should have never gotten a loan in the first place, There is no *right* to home ownership.  The govermnet and speical intersts are forcing banks to give home loans to people who should never have gotten them.  No one in their right mind should get a ARM. Save your money put a large down pay some points and live below your means.  It can be done.

  • http://www.preferred-systems.com Greenville Computer Support

    There’s blame for everyone in this mess.

    Clearly the Countrywide CEO is an idiot for not understanding that anything he says in email might get released, either by accident, hacking, or lawsuit.

    Lots of people knew that their mortages were ARM, and that they could go up, but they expected to flip the house and make 100k or more in a few months, just like on tv, so they didn’t care.  Now that the bill is due, they suddenly forget those other terms.

    The lenders did use some bad practices, and in some cases, some people got screwed.

    I’m pleased that some people accept responsiblity, and are trying to stay afloat.  I know this is stressful for everyone.

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