Welcome, Guest. Please login or register.
Did you miss your activation email?
November 22, 2017, 05:05:07 pm
HomePredMockPollEVCalcAFEWIKIHelpLogin Register
News: Please delete your old personal messages.

+  Atlas Forum
|-+  General Politics
| |-+  Economics (Moderator: Torie)
| | |-+  Ex-Leaders of Countrywide Profit From Bad Loans
« previous next »
Pages: [1] Print
Author Topic: Ex-Leaders of Countrywide Profit From Bad Loans  (Read 1258 times)
Beet
Moderators
YaBB God
*****
Posts: 21682


View Profile
« on: March 04, 2009, 04:59:32 pm »
Ignore

By ERIC LIPTON
Published: March 3, 2009
CALABASAS, Calif. — Fairly or not, Countrywide Financial and its top executives would be on most lists of those who share blame for the nation’s economic crisis. After all, the banking behemoth made risky loans to tens of thousands of Americans, helping set off a chain of events that has the economy staggering.

So it may come as a surprise that a dozen former top Countrywide executives now stand to make millions from the home mortgage mess.

Stanford L. Kurland, Countrywide’s former president, and his team have been buying up delinquent home mortgages that the government took over from other failed banks, sometimes for pennies on the dollar. They get a piece of what they can collect.

“It has been very successful — very strong,” John Lawrence, the company’s head of loan servicing, told Mr. Kurland one recent morning in a glass-walled boardroom here at PennyMac’s spacious headquarters, opened last year in the same Los Angeles suburb where Countrywide once flourished.

“In fact, it’s off-the-charts good,” he told Mr. Kurland, who was leaning back comfortably in his leather boardroom chair, even as the financial markets in New York were plunging.

As hundreds of billions of dollars flow from Washington to jump-start the nation’s staggering banks, automakers and other industries, a new economy is emerging of businesses that hope to make money from the various government programs that make up the largest economic rescue in history.

They include big investors who are buying up failed banks taken over by the federal government and lobbyists. And there is PennyMac, led by Mr. Kurland, 56, once the soft-spoken No. 2 to Angelo R. Mozilo, the perpetually tanned former chief executive of Countrywide and its public face.

Mr. Kurland has raised hundreds of millions of dollars from big players like BlackRock, the investment manager, to finance his start-up. Having sold off close to $200 million in stock before leaving Countrywide, he has also put up some of his own cash.

While some critics are distressed that Mr. Kurland and his team are back in business, the executives say that PennyMac’s operations serve as a model for how the government, working with banks, can help stabilize the housing market and lead the nation out of the recession. “It is very important to the entire team here to be part of a solution,” Mr. Kurland said, standing in his office, which has views of the Santa Monica Mountains.

It is quite evident that their efforts are, in fact, helping many distressed homeowners.

“Literally, their assistance saved my family’s home,” said Robert Robinson, of Felton, Pa., whose interest rate was cut by more than half, making his mortgage affordable again.

But to some, it is disturbing to see former Countrywide executives in the industry again. “It is sort of like the arsonist who sets fire to the house and then buys up the charred remains and resells it,” said Margot Saunders, a lawyer with the National Consumer Law Center, which for years has sought to place limits on what it calls abusive lending practices by Countrywide and other companies.

http://www.nytimes.com/2009/03/04/business/04penny.html?partner=rss&emc=rss
Logged

"Clinton failed, Bush failed, and Obama failed [to start a nuclear war]. I won't fail." - Donald J. Trump
Small Business Owner of Any Repute
Mr. Moderate
Moderators
YaBB God
*****
Posts: 13581
United States


View Profile WWW
« Reply #1 on: March 12, 2009, 05:43:42 pm »
Ignore

I wonder if people are ever going to go after the mortgage brokers?  You know, the ones that were falsifying documents left and right to get anyone and their mother into loans regardless of their ability to afford them?  Offering loans with introductory rates of 1.9% that reset, like, a month later just to work a loophole?

Anyone?  Anyone?
Logged

Mr Moderate at 54/10 is a total joke, he is a horror.

I think it is very possible that Vladimir Putin could be the Antichrist.  That is nothing more than an educated guess on my part.
Sam Spade
SamSpade
YaBB God
*****
Posts: 27868


View Profile
« Reply #2 on: March 13, 2009, 12:13:22 am »
Ignore

I wonder if people are ever going to go after the mortgage brokers?  You know, the ones that were falsifying documents left and right to get anyone and their mother into loans regardless of their ability to afford them?  Offering loans with introductory rates of 1.9% that reset, like, a month later just to work a loophole?

Anyone?  Anyone?

Of course not.

Btw, who do you think benefits the most from Obama's mortgage plan? 

The loan servicers.  (I hope you didn't say the deadbeat homeowners, lol)

Which means...
Logged
○∙◄☻¥tπ[╪AV┼cVê└
jfern
YaBB God
*****
Posts: 41723


Political Matrix
E: -7.38, S: -8.36

View Profile
« Reply #3 on: March 13, 2009, 12:48:04 am »
Ignore

Obvious trash. And I don't really understand bailing out homeowners who screwed up. The money would be better spent on things that would have more bang for the buck in terms of stimulating the economy and creating jobs.
Logged

Sam Spade
SamSpade
YaBB God
*****
Posts: 27868


View Profile
« Reply #4 on: March 13, 2009, 12:51:39 am »
Ignore

Obvious trash. And I don't really understand bailing out homeowners who screwed up. The money would be better spent on things that would have more bang for the buck in terms of stimulating the economy and creating jobs.

As I said in another thread, it is strange times when the extremists, the fruitcakes and the senile have it more right than the normal folks.  We also agree on letting the bad banks fail too, so...

Of course, we disagree on spending the money, mainly because I would prefer to see it not be spent at all (scared, rightfully I might add, of the bond market), so the agreement is not 100%, but still...
Logged
Vice President PiT
PiT (The Physicist)
Moderators
YaBB God
*****
Posts: 27144
United States


View Profile
« Reply #5 on: March 14, 2009, 06:56:01 pm »
Ignore

Obvious trash. And I don't really understand bailing out homeowners who screwed up. The money would be better spent on things that would have more bang for the buck in terms of stimulating the economy and creating jobs.

As I said in another thread, it is strange times when the extremists, the fruitcakes and the senile have it more right than the normal folks.  We also agree on letting the bad banks fail too, so...

Of course, we disagree on spending the money, mainly because I would prefer to see it not be spent at all (scared, rightfully I might add, of the bond market), so the agreement is not 100%, but still...

     Normal folks probably aren't even aware of economics, let alone understand it. It makes sense that they wouldn't know what to do with folks who screw up on their loans.
Logged

Pages: [1] Print 
« previous next »
Jump to:  


Login with username, password and session length

Logout

Powered by SMF 1.1.21 | SMF © 2015, Simple Machines