Countrywide Essay Example | Topics and Well Written Essays - 250 words

Countrywide - Essay Example Otherwise, the ratio dropped to -11.61 in 2007 due to the general depression that affected the global economy (Kaplan, 2011). We can attribute the drop to predatory lending prices and slow housing market. The company was involved in the strategies only to lead it into problems. It is important to recognize that the company experienced a low return on assets. Ethics is a major determinant for the success of any business organization. The company’s poor performance can be partly attributed to unethical practices that it engaged while trying to maximize profit and introduce new products (Kaplan, 2011). For instance, subprime mortgage is a loan given to people with low income taking advantage of their lack of understanding of terms of the loans. The company misled the borrowers that it had a fixed rate in order to attract more clients yet they new that the people could not afford. The strategy lowered reputation of the