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CEO Who Led Nation’s Biggest Subprime Lender Says He Has ‘No Regrets’

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"CEO Who Led Nation’s Biggest Subprime Lender Says He Has ‘No Regrets’"

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During the buildup of the housing bubble, one subprime lender stood above all others: Countrywide, which issued $97 billion of subprime loans, nearly $17 billion more than the next largest lender. The bank blew itself up via these loans, and was bought by Bank of America in early 2008.

The $40 billion in losses and thousands of foreclosures caused by Countrywide don’t bother former CEO Angelo Mozilo though, who said that his bank was a “world class company” and that he has “no regrets”:

Mozilo, who led the lender blamed by lawmakers and regulators for contributing to the housing collapse, spoke in a June 2011 deposition as part of a lawsuit between his firm, which was bought by Bank of America Corp. (BAC), and MBIA Inc. (MBI), according to documents filed this week in New York. [...]

Mozilo was responding to questions from an MBIA attorney who asked if he regretted how Calabasas, California-based Countrywide was run after “all the foreclosures and ruined lives and lawsuits.” Mozilo called the lawyer’s question “nonsensical and insulting.”

“I have no regrets about how Countrywide was run,” Mozilo said. “We were a world-class company in every respect.”

Mozilo once called homeowners looking for relief on their mortgages “disgusting” and “outrageous.” Countrywide was also notorious for using VIP loans to secure favorable public policy.

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