The Justice Department has abandoned a civil suit against Countrywide Financial co-founder Angelo Mozilo, Bloomberg News is reporting.
Mozilo built Countrywide into the nation’s largest mortgage lender, using the the risky subprime mortgages
that fuelled the financial crisis.
According to Bloomberg’s Keri Geiger, Greg Farrell and Tom Schoenberg, the 77 year old has been living in his 12,692-square-foot house in Santa Barbara, California, buying up real estate and writing his memoirs so his grandchildren “will know the truth.”
Mozilo has denied any misconduct and maintained that the burst of the housing bubble, not Countrywide’s lending practices, caused the crisis.
Countrywide, which was acquired by Bank of America in 2008, originated over $408 billion worth of loans, many to badly vetted and risky borrowers.
Mozilo had to pay a $67.5 million penalty to the SEC in 2010, of which Bank of America covered a portion. He did this without admitting or denying any wrongdoing on his part.
Read the full Bloomberg story here.
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