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Indeed, the complaint lists more than 26 areas in which they acted recklessly, including a failure to put adequate limits on the concentration of mortgages and employee compensation programs that encouraged high loan volume at the expense of loan quality.
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According to court depositions, a mortgage underwriter asked Ms. Mairone at the Texas meeting how her push for higher loan volume squared with what Mr. Mozilo said the previous day about Countrywide's commitment to sound lending.
That would benefit the survivors, which could offset slimmer margins with higher loan volumes.
For this reason, it had intervened last month to limit the volume of high loan to income mortgages that lenders would be permitted to approve.
First, it encouraged banks to loosen lending standards because more loan volume meant higher profits; then it led to over-leverage, and finally it led to complacency.
The program began in 2007 after the subprime mortgage market collapsed, and Countrywide tried to prop up its loan volume by concentrating on higher-quality mortgages that met the underwriting requirements of Fannie and Freddie.
Loans to retail customers and SMEs are of particularly high importance in Germany, since more than 50%% of the total loan volume is granted to this specific customer group (Deutsche Bundesbank 2014).
He added, "We would think that loan volume will continue to go down as we continue to tighten credit to fully reflect the high cost of pricing on the loan side".
The weak loan volume has led to an industrywide consolidation.
Not surprisingly, V.A. loan volume has fallen so far this year.
LendingClub's loan volume has quickly grown.
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CEO of Professional Science Editing for Scientists @ prosciediting.com