View more on these topics

Son follows lender Angelo Mozilo into mortgage industry

Mozilo senior: woes stem from his work in the sub-prime mortgage market

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.


Households say finances were down in August

Three in 10 households reported a drop in their finances in August, says the Markit/YouGov Household Finance Index. This reflects a decline in income and a rise in the price of goods and services.


Payplan calls for debt advice to be regulated

Payplan’s call for statutory regulation of the debt advice sector has faced opposition from the industry. John Fairhurst, managing director of Payplan, says apart from concern about the lack of oversight on the financial stability of debt solutions companies, his main worry is the amount that clients are being charged. He says: “There is a […]

The chance mutation of mutuality

The evolution of building societies took an unexpected twist in August when a low-life grave dancer teamed up with the enfant terrible of the mutual lenders to create what might be a new template for the sector in the form of the Kent Reliance Industrial and Provident Society with a subsidiary bank as the conduit […]

Eric Stoclet

Basel III set to fortify banks

The financial crisis has seen banks looking for handouts from government, but the upcoming Basel III proposals are designed to help banks withstand the shocks in the first place, says Eric Stoclet, CEO of Crown Mortgage Management

Reforming India: just the beginning

By Kunal Desai, Neptune India Fund

As global investors continue to scour emerging markets through the lens of reform potential, India shines bright. Indeed, we think it can sparkle even brighter. We anticipate India’s self-imposed 10-year ‘policy holiday’ to turn into one of the most pro-growth and pro-investment policy calendars seen in Asia in years. The Indian electorate has engineered a historic verdict. We now have the strongest Indian government since 1984, with the pro-market Bharatiya Janata Party (BJP) achieving an absolute majority for the first time in the party’s history.


News and expert analysis straight to your inbox

Sign up