Financial Loss

countrywide Financial Debacle countrywide Financial kitty was a owe lending giant founded by Angelo Mozilo and David Loeb in 1969. With a long level, 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 approaching of Countrywide Financial. Many issues related to Countrywides note practices resulted in the companys failure as come up as the sub bang mortgage market collapse as a whole. Countrywide had an extreme change in its business dodge 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 backing and spoiled business practices. The main issue for Countrywide was this spectacular change in st deemgy that did not adequately measure out the insecurity associated with its business practices and turned a blind warmness to unethical business behavior. Relaxed underw riting 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 sanction for a bestow they could not realistically afford or have loans on multiple stems at one m that they could not adequately cover. Adjustable rate mortgages that increased aft(prenominal) the initial low interest rate period allowed customers to corrupt phratrys they would never be able to pay for. Many customers had intend on flipping the main office or counted on the home care for increasing affluent that they could sell the home before 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 happen a home equity loan for 20% of the homes determine. This resulted in inadequate collateral for these types of loan s that were depending on the value of the ho! me to increase. Once...If you extremity to get a full essay, distinguish it on our website: OrderCustomPaper.com

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