A former subprime lender and author of the soon-to-be released book believes that Countrywide CEO Angelo Mozilo’s decision to forfeit $37.5 million in severance pay doesn’t go far enough to justify the damage inflicted by his organization.
Richard Bitner, former subprime lender and author of the soon-to-be released book, Greed, Fraud & Ignorance: A Subprime Insider’s Look at the Mortgage Collapse, believes that Countrywide CEO Angelo Mozilo’s decision to forfeit $37.5 million in severance pay doesn’t go far enough to justify the damage inflicted by his organization.
“I believe the lending standards utilized by Countrywide played a major part in the problems we have in today’s housing market,” said Bitner. “I have no doubt that consumers would be in better shape today if they had managed risk more effectively.”
Bitner believes that Mozilo’s decision to forfeit part of his severance package is too little, too late.
“Is this maneuver supposed to make consumers who are upside-down on their home values or Countrywide stockholders that have lost 90% of their investment feel better? No one gives up that much money unless they did something wrong. If he really wants to do the right thing, he’ll take the hundreds of millions he made in stock options and figure out a way to help those people who are caught in the housing crisis,” said Bitner.
Having left his own mortgage company in late 2005, believing the subprime industry was no longer serving the greater good, Bitner is now on a mission to fix the lending business. He believes the key to effective legislation starts with understanding the root causes of the problem.
“While I applaud Congress for their efforts in trying to fix this mess, it’s clear they have a long way to go. Never again can we allow the type of standards utilized by lenders like Countrywide to harm consumers,” said Bitner.
His book, which details the inner workings of the subprime industry, provides an in-depth examination of the lending business along with a blueprint for mortgage reform.
“There is an underbelly to this industry that most consumers never see,” said Bitner. “Unless Congress and the President are willing to tackle these issues from the mortgage broker to the rating agencies, the underlying problems will never be addressed.”
All media contacts should be directed to Mr. Bitner at (972) 679-9505 or directly at richard@lendingsanity.com.
