Mozilo: 'Exotic' Rules Would Be Harmful

The chief executive officer of the nation's largest mortgage lender says new proposed federal underwriting guidelines for so-called "exotic" mortgage products would do more harm than good.Speaking at the recent Midwinter Conference in Utah, Countrywide Financial CEO and chairman Angelo Mozilo said the proposed rules -- which require, among other things, that lenders underwrite loans at their fully indexed rate -- will all but wipe out liquidity in the marketplace and cause problems up and down the housing "food chain." National Mortgage News was the only news organization at the conference, which is run by former Merrill Lynch managing director Richard Pratt. (For full details of the conference, see the March 11 issue of NMN.)