Reprobation And The CW Bus

Reprobate: A lonely word meaning lost, rejected, troublemaker

Reprobation: A strong condemnation or disapproval of somebody or something (Encarta Dictionary)

When reading news reports of big corporations and financial companies who are reported to have hurt our industry and our society, reprobation comes easily. Take Bernie Madoff as a prime example. His victims’ statements about him are chilling and sad. One woman said this about how much Madoff hurt her family, “I told my father he could not die because I didn’t have enough money to bury him. This is what we are reduced to after Madoff lived so well off of all our money. He ought to be able to look forward to just exactly what he has done to us: No hope, no future and no forgiveness.” If these stories weren’t so real you might think that Charles Dickens himself wrote today’s news as advertisement for his latest book, "Great Expectations Gone Bad". Dickens would surely have used the name Madoff also, as this is what he did with other people’s money! Then there is Shakespeare wanting to pen in on the moment in his clever take on "To Dupe or Be Duped"!

But this is not fiction and certainly no joking matter, although over all, there seems quite a circus of characters in our financial market place today. In another corner of our financial drama are the Countrywide executives, namely Angelo Mozzilo, who is under heavy scrutiny today but certainly was not for many years. Quite the contrary, many people sought out his company (CW) and hopped on the CW Bus for many reasons. To name a few:

People in high places could get loans for expensive homes without the hassle of dealing with the “little people's " guidelines and while capturing preferred rates

CW easy lending policy drew mortgage professionals eager to earn more and more money

Vendors who could capture even a little piece of a seat on the CW Bus saw their revenues increase dramatically

Countrywide parties drew huge crowds from the Who’s Who in Mortgage Banking. Hundreds of mortgage professionals, legislators, vendors, and the press who were wined and dined pledged continuing loyalty to CW and stayed in their seats even when the CW Bus ran too fast or took corners on two wheels careening as if out of control.

As we read in the news reports, volumes at CW were staggering. Where did that volume originate? Where did it end up? The CW Bus carried many and they all know who they are; from legislators paving the way; loan correspondents looking the other way at churning and loan safety; to appraisers who aligned to closely to their clients; to borrowers who made up stuff; and all the happy campers in-between who found themselves on the money road of the CW Bus. Few felt lonely or nervous.

But as the bus headed for the cliff many jumped off and clucked their tongues as it went over the edge saying, “Shame on them! Look what they did!” Let the reprobating begin!!

Could it be dear readers; that this very public condemnation of Angelo Mozzlio is a bright light for the citizens to focus upon while some, who were on the bus, lurk in the shadows of history hoping not to be discovered?

Societal Reality Check: There are some bad players still out there. Some of the worst ones point the biggest fingers. The mortgage industry will find it more difficult to recover its ethics and integrity at the grass roots level until the legislators clean up their ethical acts.