Page 600 - untitled

Notes to Chapter 7 571

12. Ellen Schloemer, Wei Li, Keith Ernst, and Kathleen Keest, “Losing Ground: Foreclosures in the
Subprime Market and Their Cost to Homeowners,” Center for Responsible Lending, December 2006,
p. 22.
13. 2009 Mortgage Market Statistical Annual, vol. 1, The Primary Market, p. 4, “Mortgage Originations
by Product.”
14. Christopher Mayer, Karen Pence, and Shane M. Sherlund, “The Rise in Mortgage Defaults,” Jour-
nal of Economic Perspectives 23, no. 1 (Winter 2009): Table 2, Attributes for Mortgages in Subprime and
Alt-A Pools, p. 31.
15. 2009 Mortgage Market Statistical Annual, 2:13, “Non-Agency MBS Issuance by Type.”
16. 2009 Mortgage Market Statistical Annual, 1:6, “Alternative Mortgage Originations”; previous data
extrapolated in FCIC estimates from Golden West, Form 10-K for fiscal year 2005, and Federal Reserve,
“Residential Mortgage Lenders Peer Group Survey: Analysis and Implications for First Lien Guidance,”
November 30, 2005.
17. Inside Mortgage Finance.
18. Countrywide, 2005 Form 10-K, p. 39; 2007 Form 10-K, p. 47 (showing the growth in Country-
wide’s originations).
19. Angelo Mozilo, email to Sambol and Kurland re: Sub-prime Seconds. See also Angelo Mozilo,
email to Sambol, Bartlett, and Sieracki, re: “Reducing Risk, Reducing Cost,” May 18, 2006; Angelo
Mozilo, interview by FCIC. September 24, 2010.
20. David Sambol, interview by FCIC, September 27, 2010.
21. See Countrywide, Investor Conference Call, January 27, 2004, transcript, p. 5. See also Jody
Shenn, “Countrywide Adding Staff to Boost Purchase Share,” American Banker, January 28, 2004.
22. Patricia Lindsay, written testimony for the FCIC, hearing on Subprime Lending and Securitization
and Government-Sponsored Enterprises (GSEs), day 1, sess. 2: Subprime Origination and Securitization,
April 7, 2010, p. 3
23. Andrew Davidson, interview by FCIC, October 29, 2020.
24. Ibid.
25. David Berenbaum, testimony before Senate Committee on Banking, Subcommittee on Housing,
Transportation and Community Development, 110th Cong., 1st sess., June 26, 2007.
26. Email and data attachment from former Golden West employee to FCIC, subject: “re: Golden
West Estimated Volume of Adjustable Rate Mortgage Originations,” December 6, 2010.
27. Herbert Sandler, interview by FCIC, September 22, 2010.
28. Washington Mutual, “Option ARM Focus Groups—Phase II,” September 17, 2003; Washington
Mutual, “Option ARM Focus Groups—Phase I,” August 14, 2003, Exhibits 35 and 36 in Senate Perma-
nent Subcommittee on Investigations, exhibits, Wall Street and the Financial Crisis: The Role of High Risk
Home Loans, 111th Cong., 2nd sess., April 13, 2010 (hereafter cited as PSI Documents), PDF pp. 330–51,
available at http://hsgac.senate.gov/public/_files/Financial_Crisis/041310Exhibits.pdf.
29. PSI Documents, Exhibits 35 and 36 pp. 330–51.
30. Ibid., pp. 330–51, 334.
31. Ibid., p. 345.
32. Ibid., p. 346.
33. Washington Mutual, “Option ARM Credit Risk,” August 2006, PSI Document Exhibit 37, p. 366.
34. PSI Documents Exhibit 37, p. 366, showing average FICO score of 698; p. 356; comparing con-
forming and jumbo originations.
35. Ibid., p. 357.
36. Document listing Countrywide originations by quarter from 2003 to 2007, provided by Bank of
America.
37. Countrywide October 2003 Loan Program Guide (depicting a maximum CLTV of 80 and mini-
mum FICO of 680) and July 2004 Loan Program Guide (showing 90% 620 FICO).
38. Countrywide Loan Program Guide, dated March 7, 2005.
39. Federal Reserve, “Residential Mortgage Lenders Peer Group Survey: Analysis and Implications for
First Lien Guidance,” November 30, 2005, pp. 6, 8.
40. Angelo Mozilo, email to Carlos Garcia (cc: Stan Kurland), Subject: “Bank Assets,” August 1, 2005.