What were the incentives for countrywide


Task: Discuss the key facts and critical issues presented in the case.

Question 1. What were the incentives for Countrywide to write so many subprime loans?

Question 2. What was Countrywide's logic in thinking that originating loans for people with poor credit ratings would result in positive outcomes?

If you were CEO of Countrywide Financial, how would you have structured the evaluations of salespeople to prevent them from making loans to anybody without following specific guidelines on income, appraisals, and documentation?


Attachment:- Countrywide Financial.rar

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