Countrywide Financial Corp to forfeit 37.5 million in severance

By Margarita Snegireva. Countrywide Financial Corp, U.S. mortgage lender announced that its CEO Angelo Mozilo will forfeit around $37.5 million in severance and other payments related to the company's sale to Bank of America Corp.

Photo: Countrywide Financial Corp to forfeit 37.5 million in severance

Countrywide has been convulsed by mounting losses and defaults, a loss of access to credit markets and a slew of lawsuits.

Countrywide Financial Corporation is a diversified financial marketing and service holding company engaged primarily in residential mortgage banking and related businesses.

Countrywide Financial is composed of:

Mortgage Banking, which originates, purchases, securitizes, and services mortgages. In 2006 Countrywide financed from 17 to 20% of all mortgages in the United States, at a value of about 3½% of United States GDP, a proportion greater than any other single mortgage lender.

Banking, which operates a federally chartered thrift that primarily invests in mortgage loans and home equity lines of credit primarily sourced through its mortgage banking operation.

Capital Markets, which operates as an institutional broker-dealer that primarily specializes in trading and underwriting mortgage-backed securities.

Insurance, which offers property, casualty, life and credit insurance as an underwriter and as an independent agent.

Global Operations, which provides mortgage loan application processing and loan servicing.

During the year ended December 31, 2005, for example, the Mortgage Banking segment generated 59% of the Company's pre-tax earnings.

On January 11th, 2008, Bank of America announced that they plan to purchase Countrywide Financial for $4.1 Billion in stock.