Tuesday, May 15, 2007

Countrywide to hire staff

Countrywide intends to hire an additional 2,000 employees this year, the company announced on Monday. These additions will allow the lender to open 100 new branch offices, according to company CEO Angelo Mozilo.

What’s going on here? Countrywide is not doing that well financially, plus we officially have a slump in the mortgage market, plus most lenders are cutting staff and closing branch offices. Why is Countrywide suddenly hiring more people and opening new offices? Mr. Mozilo announced at the UBS Financial Services Conference on Monday that Countrywide intends to increase its market share and additional staff is needed to achieve this goal. And while it is true that Countrywide has managed to stay afloat so far, I don’t yet see how this is going to work.

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