Angelo Mozilo, Whose Mortgage Giant Fell in Housing Bust, Dies at 84
The individual mentioned in the text built Countrywide Financial into the largest mortgage lender in the US. However, the company's risky loans played a role in causing the 2008 financial crisis.
Angelo Mozilo, the co-founder of Countrywide Financial, passed away at the age of 84. His death was announced by the Mozilo Family Foundation, but the cause was not specified. Mozilo played a significant role in the housing crisis of 2008, as Countrywide was involved in selling risky mortgage products to homeowners, contributing to the housing bubble. When the bubble burst, Countrywide collapsed, and Mozilo faced scrutiny from regulators and lawmakers. The company was eventually acquired by Bank of America, resulting in significant financial losses for the bank. Mozilo defended his company's practices but later settled charges of misleading investors and insider trading. Despite being portrayed as a villain, his family remembers him as a force in the mortgage industry and an excellent father. Mozilo started Countrywide with a partner in 1969 and grew it into the largest mortgage lender in the US. He also made efforts to provide loans to low-income and minority communities. However, he later described some of the riskier loans as "poison." Mozilo's legacy remains controversial, but he expressed that there are more important things in life than his reputation.