CountrywideHomeLoanSucks

I ran across this website the other day and got a big laugh. But it turns out there are a lot of people who are not laughing about Countrywide.

www.countrywidehomeloansucks.com

is a website where you can buy merchandise, join a class action law suit, post your personal Countrywide nightmare, or read the horror stories of other consumers.

Now, there are lots of reasons to dislike this company. For many years we refused to do business with them, since it was Anthony Mozilo’s expressed goal to put mortgage brokers out of business.

Later when forced to acknowledge that mortgage brokers held a lot of market share, he struck a more conciliatory pose and asked for our business through the wholesale channel. After opening relations, his reps vigorously promoted sub-prime loans as well as the 5–year Fixed Pay Option Arm—certainly the most worst loan program ever devised.

As the sub prime meltdown took hold and fingers began pointing, their CEO Anthony Mozilo began vilifying mortgage brokers once again in an attempt to claim the moral high ground and divert attention from his own role in creating the problem. At the same time, Countrywide was steadfastly refusing to assist home owners stuck in the company’s bad loans. “Get a roommate,” was the advice offered to one of my clients by the friendly folks at CW.

Last Spring, as Countrywide’s CEO was jaw-boning the market to boast about Countrywide’s strength, it was discovered that Mozilo had been dumping Countrywide stock at a frantic pace.

Here is a site showing the insider trades by Mozilo and company. Total sales: $600m. Total buys: $73k Pretty easy to see which way he thought the wind was blowing.

In April, three Countrywide execs pleaded guilty to insider trading. Last month, the Securities and Exchange Commission opened an informal probe into Mozilo’s own stock sales because of some highly unusual, late-night tweaking of his 10b5–1 plan.

And lest you think I’m just grinding a personal ax, it isn’t just customers and brokers who are mad. In 2005, Countrywide paid $30 million to settle a class action suit by 400 of its account executives at the Rosemead call center in California.

Just last month on October 16, employees filed another class action complaint alleging that,

Countrywide - including members of its Board of Directors - engaged in unlawful actions that resulted in severe losses to its employee retirement plan. The suit alleges that Countrywide’s business practices have potentially caused its 401(k) plan to lose over $100 million in retirement savings, including by violating numerous fiduciary duties to its employees under the Employee Retirement Income Security Act (”ERISA”).

According to Kenneth A. Wexler of Wexler Toriseva Wallace,

Unfortunately, it appears that Countrywide’s improper business practices, which caused the company’s stock values to plummet, put the retirement plan in serious jeopardy.

I just wanted you to see behind the pretty facade and smiley guy in the commercials. It’s important to know who you’re really dealing with.

Remember, mortgage brokers can shop among many lenders, and we’re not obligated to any. A good broker can find the best terms available from all sources, and that often means finding the one loan the will work. Seek reputable, experienced, expert advice.

Give me a call or email. I serve most of the Western U.S. To apply for a loan, visit my website and click Loan Application at the top.

Oh, and join the conversation. I’d love to have your comments below.

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