Mark Mozilo, son of Angelo Mozilo, who as boss of Countrywide Financial Services earned around $470m between 2001 and 2006 from sub-prime mortgages, is following in his father’s footsteps well almost in so far he’s in the mortgage business.
While dad, regarded by some as the Godfather of sub-prime mortgage lending, is still navigating his way through a sea of litigation, his son is currently involved in more sustainable lending. He’s chief executive of Calcop Advisors of Pasadena which won’t do mortgages with a loan to value ratio over 60%!
Mozilo senior’s company was one of the US’s most respected lenders for over 30 years but things came to a head in 2008 and the business was bought by Bank of America as the financial precipice beckoned.
But even that move, described at the time by Bank of America’s chief executive Ken Lewis as “a rare opportunity,” has proved troublesome. Just last month the bank paid out £380m to investors who claimed that Mozilo and fellow executives hadn’t disclosed that they’d been fuelling a housing crisis with unsustainable lending brought about by lowering lending standards.