Countrywide Financial Chairman Angelo Mozilo's e-mail sets off a furor

[flashl]

He calls a borrower's plea for help a "disgusting" example of form letters inundating the Calabasas mortgage lender.

Apparently clicking "reply" when he meant to hit "forward," Countrywide Financial Corp. Chairman Angelo Mozilo ignited an online furor Tuesday by describing a mortgage customer's plea for help as a "disgusting" example of form letters inundating the Calabasas home lender.

Mozilo's e-mail rocketed back to the customer, Daniel Bailey Jr., who had asked Countrywide to modify the terms of his loan so he wouldn't lose his home of 16 years.

...

The reply touched off debate on housing websites.

...

Bailey and Mozilo couldn't be reached for comment. Late in the day, the lender issued this statement: "Countrywide and Mr. Mozilo regret any misunderstanding caused by his inadvertent response to an e-mail by Mr. Bailey. Countrywide is actively working to help borrowers, like Mr. Bailey, keep their homes."

LA Times

[fasttense]

1. I went to the web site that had all the ruckus.

The guy who sent the supposed form letter, wrote: "Not all of us have been to a university to study business and we need some help in dealing with these matters. (perhaps, if we had, we would not have fallen for what we did, to start with)... I am trying to do the right thing, I am trying with every ounce of what I have left in me not to blow my brains out over losing the home I have been in for 16 years. The only hope I had left was that perhaps the countrywide company did want to help the people it is servicing..."

My God, this man is considering suicide and Countrywide's response is disgust.

From the LA Times: "I am tired of hearing borrowers complain that they didn't understand what they were signing. . . . If borrowers want the freedom to take out credit for hundreds of thousands of dollars, they are equally responsible to not sign something they don't understand."

But even our Fed Chair told us these risky loans were a good thing. Yet consumers who were protected up until now from loan scams, are supposed to know better than Greenspan.

[lonestarnot]

3. Son of a bitches!

[flashl]

2. The worn out "not understanding business finance" put down is disingenuous

given all of the daily revelations about long standing and unchecked predatory practices in the mortgage industry.

Recent articles about the foreclosure crisis points to mental health concerns, which suggest Mr Bailey is not the only one with suicidal ideation. The average American is not aware of the "Greater Fool" paradigm that operates under the name of business transaction.

This is a typical Countrywide complaint:

4 months & no to refinancing!
Aug 2007

After putting 20% down on my home I got a adjusted mortgage & a prepenalty. I couldn't refinance until May 07. I now find out that shouldn't have happened, because I put a lot of money down. I started my refinance process in May with CountryWide. They kept my refinance going for 4 months and ran my credit down almost 100% and decide they couldn't do it. Now I'm trying again, but having a hard time because all the banks are closing, my credit lower and my income is not enough. Instead of the 6% and a pay out I was being offered 3 - 4 months ago, its now 10% with pay out or no pay out, and a lower interest rate. Instead of my credit being 720 when I started it is now 620. Who runs your credit 19 times in 4 months, Countrywide did. If I don't get thru this in the next month, I will find myself foreclosing. In my case Countrywide is responsible and they're suppose to be my mortgage company. I thought who better to turn to. What do I do now? I tried the steps to avoid foreclosure and was screwed instead. All that 0% down is false advertising.
Complaints Board