The stock sale was conducted under a prearranged 10b5-1 trading plan, which allows a company insider to set up a program in advance for such transactions and proceed with them even if he or she comes into possession of material nonpublic information.
Angelo Mozilo is a co-founder and aged 68. So with his perspective and long in the tooth experience, now that he is in the twilight of his career he has decided to liquidate as quickly as possible and put his money somewhere much safer, I assume.
You can listen to all the guidance you want, but when the CEO runs for the hills investors need to worry.
CFC 1-yr chart: