Excerpts From Mozilo E-Mails

Excerpts From Mozilo E-Mails - 6/4/2009

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HEADLINES \| SETTLEMENTS AND DISMISSALS \| COURT FILINGS LINKS TO OTHER NEWS \| NEWS ARCHIVE	HEADLINES ARCHIVED SETTLEMENTS AND DISMISSALS ARCHIVED

HEADLINE NEWS:

Excerpts From Mozilo E-Mails, E-Mail Excerpts Released By The Sec In Conjunction With Insider Trading And Civil Fraud Charges Against Former Countrywide Ceo Angelo Mozilo
Staff Writer

BusinessWeek. June 4, 2009
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EXCERPT: Excerpts of e-mails from Angelo Mozilo, former CEO of Countrywide Financial, as released June 4 by the Securities & Exchange Commission. The SEC has charged Mozilo with insider trading and civil fraud. Civil fraud charges also were filed against Countrywide's former Chief Operating Officer David Sambol and ex-Chief Financial Officer Eric Sieracki. All three have denied wrongdoing. Sept. 26, 2006—following up a meeting with Sambol the previous day about the pay-option ARM loan portfolio: "We have no way, with any reasonable certainty, to assess the real risk of holding these loans on our balance sheet. The only history we can look to is that of World Savings however their portfolio was fundamentally different than ours in that their focus was equity and our focus is fico. In my judgement [sic], as a long time lender, I would always trade off fico for equity. The bottom line is that we are flying blind on how these loans will perform in a stressed environment of higher unemployment, reduced values and slowing home sales."… … "pay options are currently mispriced in the secondary market, and that spread could disappear quickly if there is an foreseen [sic] headline event such as another lender getting into deep trouble with this product or because of negative investor occurance [sic]." … "timing is right" … to … "sell all newly originated pay options and begin rolling off the bank balance sheet, in an orderly manner, pay options currently in their port[folio]." Apr. 17, 2006—to Sambol concerning Countrywide's subprime 80/20 loans: "In all my years in the business I have never seen a more toxic prduct [sic]. It's not only subordinated to the first, but the first is subprime. In addition, the FICOs are below 600, below 500 and some below 400[.]

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