A lot can change in a year just ask Angelo Mozilo.

Late last year in an interview, the mortgage industry legend said he was planning to step down from his position as chief executive of Countrywide Financial Corp., the company he co-founded nearly 40 years ago; he marked his 68th birthday, Dec. 16, as the date by which he was going to retire.

Given that, it looked like the wheels of change were set in motion at the Calabasas-based mortgage giant when slightly more than a week ago the company announced that David Sambol was appointed to the position of president and chief operating officer, replacing Stanford Kurland who, the company said, left for personal reasons.

With Sambol, a 20-year Countrywide veteran securing a seat next to Mozilo at the boardroom table, speculation began to percolate around the industry that the promotion was a step toward replacing the 67-year-old architect of what is today the largest mortgage lender in the U.S.

However, at an investors meeting four days later Mozilo proclaimed that he had no plans of stepping aside and actually had been working with Countrywide for several months to extend his role as chief executive adding that he looks “forward to continued service to Countrywide.”

Why the change of heart?


“I really wouldn’t read too far into it,” said Edwin Groshans, an analyst with Fox-Pitt Kelton. “It was pretty much 50/50 that he was actually going to stay. I have no doubt he was contemplating retirement, but him stepping down is something you believe only when you actually see it happen.”

But a lot has changed in the past few months since Mozilo originally said he was stepping down. With a landing be it soft or hard looming for the U.S. real estate market, interest rates on the rise and a 24 percent drop in August loan volume for his company, many see Mozilo’s change of heart as a reflection of a souring housing market.

“I think he saw all the forces lining up and figured that there was no one else more qualified to run the company than him, so why leave when he’s needed most?” Groshans added. “It’s sort of a case of ‘if you want a job done right; do it yourself.'”

Over the past five years the company’s earnings have expanded to $2.5 billion in 2005 an annual growth rate of 48 percent. Total assets have also grown at a 52-percent clip over the same period. So a year ago when he was first contemplating retirement it might have seemed like a good call stepping down at the top of his game.

Now, with dark clouds looming and the opportunity to mentor and groom a possible successor, Groshans said the industry turbulence will provide an opportunity for Mozilo to battle test a possible replacement.

“Mozilo has seen this cycle before and wants to show people he can take Countrywide to the next step,” Groshans said. “The next 18 to 24 months are going to be trying for the mortgage industry.”