Angelo Mozilo, Mortgage Banker Faulted for Crisis, Dies at 84
Angelo Mozilo, the former chief executive officer of Countrywide Financial Corp., died on July 16, 2023 at the age of 84. Mozilo was a major figure in the 2008 financial crisis, and was faulted for his role in the mortgage meltdown.
Early Life and Career
Mozilo was born in the Bronx, New York in 1939. He was the son of Italian immigrants, and his father was a butcher. Mozilo attended Fordham University, where he earned a degree in economics.
Mozilo began his career in the mortgage industry in the 1960s. He worked for several mortgage companies, eventually becoming the CEO of Countrywide Financial Corp. in 1998.
Countrywide Financial Corp.
Countrywide Financial Corp. was one of the largest mortgage lenders in the United States. Under Mozilo’s leadership, the company grew rapidly, becoming one of the most profitable mortgage lenders in the country.
Mozilo was known for his aggressive approach to lending. He was willing to lend to borrowers with poor credit, and he was willing to make loans with high interest rates. This approach made Countrywide Financial Corp. a lot of money, but it also put the company at risk.
The Financial Crisis
In 2008, the housing market crashed, and the financial crisis began. Countrywide Financial Corp. was one of the companies at the center of the crisis. The company had made a lot of risky loans, and when the housing market crashed, it was unable to pay back its debts.
Mozilo was blamed for the crisis. He was accused of making risky loans and taking advantage of borrowers. He was also accused of insider trading, as he had sold millions of dollars worth of Countrywide stock before the crisis.
The Aftermath
Mozilo was forced to resign from Countrywide Financial Corp. in 2008. He was also fined $67.5 million by the Securities and Exchange Commission for insider trading.
Mozilo’s Legacy
Despite the controversy surrounding his role in the financial crisis, Mozilo was remembered as a pioneer in the mortgage industry. He was credited with revolutionizing the industry and making it more accessible to borrowers.
Mozilo was also remembered for his philanthropy. He donated millions of dollars to charities and causes throughout his life.
Final Years
Mozilo retired from the mortgage industry in 2008. He spent his final years living in California with his wife, Phyllis. He died on July 16, 2023 at the age of 84.
Remembering Angelo Mozilo
Angelo Mozilo was a major figure in the mortgage industry. He was a pioneer who revolutionized the industry and made it more accessible to borrowers. He was also faulted for his role in the 2008 financial crisis, and he was forced to pay a hefty fine for insider trading. Despite the controversy, Mozilo was remembered for his philanthropy and his contributions to the mortgage industry. He will be remembered as a major figure in the history of the mortgage industry.