The news that Bank of America has put in an offer for the failing Countrywide brings all sorts of interesting thoughts to my mind.  This transaction is positive and negative, good and bad, profitable and costly. 

Countrywide, one of the original (1969) mortgage banks, created from the hard work and genius drive of Angelo Mozilo, set the stage for mortgage banking. It gave birth to a new generation of home financing and thus home ownership.  The owner, might not be a likable person, despite his fab year- round tan, but let us give him respect for his vision. Bash him, bully him and rip him a new one, but give a little credit for vision.  He was the first to succeed, and so far the biggest to fail.  Or, did he fail? In this four billion dollar buy out, Mr. Mozilo will make out just fine.  Clearly, he will still get use of the corporate jet.  It is his jet, why should he not be able to use it.  The deal might not turn out to be the best for Bank of America, but what is does is take Countrywide out of the equation. There will no longer be speculation and litigation directly with the largest mortgage bank and this will remove some of the stress in the industry that is plaguing homeowners and the economy.  

As a mortgage broker, I am sorry to see Countrywide go.  I always had great success with the products and the staff. I do not do sub-prime or bad credit loans, only high end.  Always a pleasure to do business with, the staff was professional and enjoyable.  Perhaps a scapegoat, Mm. Mozilo will still sleep easy on the jet to the Bahamas.

– Dale Siegel