Mr. Mozilo, Tear Down Your Lies.

Mr. Mozilo,

I have to admit, I have become quite a fan of you and your company, Countrywide Financial Corporation. You have built yourself quite a company. You have been instrumental in bringing home ownership to many, regardless of race, creed, social status, or financial means. I believe you when you say that your entire life's goal was to bring home ownership to everyone that wants one. I think you have succeeded in your quest, sir.

Countrywide has become the darling of the wall street and I commend you for your deft direction and leadership in this matter. Through your guidance, you have transformed the company which you founded from a humble home loan provider to the conglomerate giant it is today. I know that along the way, you have gained many admirers, like myself, and strong influential connections in the financial institutions and in the government. You are to be commended.

With the burst of the dot com bubble, you have played a key role in propping up the American economy by averting disasterous economic down turn by bringing home ownership to the masses by taking advantage of Mr. Greenspan's proactive interest rate cuts to help stimulate the economy. You have definitely taken advantage of the situation sir and have contributed to the robust housing boom rivaling that of the dot com era just 10 years prior. During that time, many people have become rich by home ownership. You have helped create excess speculation in the housing boom that made instant millionaires and weekend home investors. Many have given up their primary jobs to partake in this new bonanza and you were much happy to oblige and continue to facilitate the greatest housing boom in history. You certainly have done your part to help an average or even below average Americans to reach their goals in the real estate boom.

Mr. Mozilo, I am quite curious lately regarding the future of the housing market. Just one month ago, you said that the subprime companies were making risky loas and that some would not survive. You were right sir, many have folded and some might even go to jail. It is interesting that you yourself said that Countrywide stands to benefit from the fallout of the housing market and mortgage lending industry purge. You have said that Countrywide realized the dangers of subprime and even alluded that you no longer partake in that field anymore, yet your earnings statement today said that subprime loans dropped 29% for prior year, which means that you are still making these risky loans. How do you account also for the fact that your company has a subsidiary called Fullspectrumlending.com? This is a subprime division is it not? If true, then are you not actively seeking these so called "risky" loan groups?

You have also said that you stand to benefit from the fall out of mortgage crisis and housing crisis. You have personally said that Countrywide stands to benefit and become stronger when the smoke clears. Yet, all I have seen so far is a lot of PR campaign by you and your lieutenants. How can you explain in honest truth your excessive selling of your options and that not one of your insiders have bought a single share of your company within the past 2 years? If your company is so sound, and if your company has taken such a dramatic hair cut in terms of share price, shouldn't you stand by your share holders and roll up your sleeves and be buying this stock, since it is so fairly valued? Since that is what your loyal share holders believe, shouldn't you lead by actions not by mouth? You sir have sold more than $25 million last March? You have sold even more just yesterday. How will you explain that other than saying that you need to "bring balance to your life?".

More importantly, if your company is fully hedged in terms of financial risks associated with mortgage defaults via insurance, did the insurance company that provides this coverage know that majority of your loans are fradulent because of your so called stated income loans? Are your prime loan portfolion consist of at least 45% in ALT-A option ARMS? How is your company so much superior to M&T, AHM, or WFM? All of those companies are as well run or better than your company yet they have had the decency to be SQUARE with the share holders and honorably took their lumps. Why are you not?

I am growing tired of the smoke and mirrors of your company. You yourself have said that the only thing that will save your industry is a rate cut in the near term. Sir that is not happening, so, what are you going to say next to prop up your share prices so that you can continue to dump your shares? I especially believe what you are telling the public that you don't think your company is worth $33 and change, otherwise, if it were you'd be buying wouldn't you? And please, what is up with your 8K? Is that the best you can do? I think you'd better look at that 5% increase mumbo jumbo that you have there because somehow the breakdown of the 5% increase in your loan doesn't jive. What? You surprised? Didn't think I could read 8K? Believe me there are plenty of people scrutinizing your every document and your actions right now. I think SEC is closely waching this issue as well.

I think the judgement day is coming. You can at least restore some dignity by telling the truth and coming clean. Your avenues of deception fades with each day and believe it or not, people are not as dumb as you think. They are catching on and you sir, are headed the same path as Kenneth Lay. Please don't disgrace your life's work and for once this year, tell the truth. I know there is some good in you. Tear down your lies.

Sincerely,
your nagging friend.