Like a Zombie, You Just Can’t Kill Countrywide Financial

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Back at the height of the housing bubble, Countrywide Financial was responsible for about 15 percent of all the mortgage loans in America. This turned out to be disastrous because the people who ran Countrywide showed no interest at all in the quality of the loans they originated. Thanks to this, their business eventually imploded and in 2008 they were acquired by Bank of America.

But fear not. The executives behind Countrywide are still around, and they’re still shoveling out the loans:

PennyMac, AmeriHome Mortgage and Stearns Lending have several things in common.

All are among the nation’s largest mortgage lenders — and none of them is a bank. They’re part of a growing class of alternative lenders that now extend more than 4 in 10 home loans.

All are headquartered in Southern California, the epicenter of the last decade’s subprime lending industry. And all are run by former executives of Countrywide Financial, the once-giant mortgage lender that made tens of billions of dollars in risky loans that contributed to the 2008 financial crisis.

This time, the executives say, will be different.

You betcha! I’m sure these folks have all learned their lessons and will never push the mortgage envelope again. We can all breathe easy.

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FACT:

Mother Jones was founded as a nonprofit in 1976 because we knew corporations and the wealthy wouldn't fund the type of hard-hitting journalism we set out to do.

Today, reader support makes up about two-thirds of our budget, allows us to dig deep on stories that matter, and lets us keep our reporting free for everyone. If you value what you get from Mother Jones, please join us with a tax-deductible donation today so we can keep on doing the type of journalism 2020 demands.

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