Financial Analysis Countrywide Financial Corporation

According to Gamble, J. Thompson A. (2011), Countrywide Financial Corporation was formed in 1969 under the leadership of Angelo Mozilo. The goal of the company was to be the largest lender for real estate loans in the United States. The strategy was successful for a few years, but was ultimately doomed for failure due to very poor business practices. The detailed strategy was for Countrywide to be involved in five different segments of the banking business. The first and most important component of Countrywide was mortgage banking. They originated, purchased, and sold mortgage loans all across the country. The second component was banking. They used customer deposits to fund the mortgage loans, and home equity lines of credit. The third component was capital markets. They specialized in trading and underwriting mortgage-backed securities. The fourth component was insurance. They sold life, casualty, disability, and property insurance. The last component was global operations which i ncluded them selling proprietary technology overseas to mortgage lenders in England. Gamble, J. Thompson, A. (2011) stressed the importance of companies conducting a SWOT analysis. They feel that it is important for a company to understand their strengths’, weaknesses, opportunities, and threats. A good SWOT analysis can help a company stay on track with their stated goals. The next few paragraphs is my perception of what a SWOT analysis would look like for Countrywide. In the early years,Show MoreRelatedFinancial Analysis And Assessment Of Countrywide Financial Corporation870 Words   |  4 PagesThis paper intends to provide a financial analysis and assessment of Countrywide Financial Corporation. The financial evaluations are based on the numbers calculated from the data on Countrywide Financial Corporation’s Financial Performance Worksheets. This paper covers three areas. 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They operate in five business segments, those being mortgage banking, banking, capital markets, insurance, and global operations. Countrywide was the largest market share among U.S. mortgage originators before unethical actions caused the downfall of the firm. Problems in Countrywide’s loan practices were evident. After the fin ancial crisis of 2008 Countrywide was found to be a significant contributor to the subprimeRead MoreCountrywide’s Unethical Business Dealings2102 Words   |  9 Pagesthe bottom half among the 104 countries surveyed (Kaufmann, 2009). Enter Countrywide Financial Corporation, who has become synonymous with home loans in America. After a decade of enormous growth, the company ranked as the nation’s largest originator and servicer of consumer mortgages. Countrywide has also become synonymous with the mortgage meltdown, as many Countrywide borrowers have defaulted on their loans. 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