cwlo

Countrywide CEO Finds Struggling Homeowners “Disgusting”

Emotions trump facts every time. Mozilo does not find borrowers "disgusting" or even the organizations, per se, that try to help borrowers. What he and many of us in the know find "disgusting" is when the "help" turns into prepatuating the myth that it is never the borrower's fault. Sorry, but if you are smart enough to own a home, you are smart enough to know that using your home as an ATM has risk. If you lose, it is your fault, period.

A few facts:

Most of the loans in default were not originated by Countrywide but from mortgage brokers, who sold them to Countrywide. If you want to fault Mr. Mozilo for making money, fine. But if you want to look to someone else besides you to blame, go to the mortgage broker who advised you on the loan and the closing attorney who, as a final stop gap, informed you as to the terms and risks of the loan.

Loan fraud cannot be accomplished by the lender alone. It takes the borrower to sign the documents on all loan products, including the "liar loans". Do not state you make $100k a year working at Walmart if you don't. If the LO puts down on the application that you do, don't sign it.

I also find it odd that these same people who say that borrowers are too dumb to write their own letters are the same ones that pushed lenders to come up with these loans for these borrowers who are "entitled" to be homeowners.