Interview Transcript: Angelo Mozilo

Bartiromo: What happened in last two months when you were calling on banks to help you or to access capital? Tell me what kind of reception you got?

Mozilo: I think. This I would characterize it these banks, banks we've been dealing with many, many years.

Bartiromo: Banks you've dealt with for 40 years.

Mozilo: Right.

Bartiromo: What do they say to you?

Mozilo: We have our own problems. So, so they were restricted. They did. They had their own issues. So they couldn't be as accommodating. But, what happened it started this way. Started with commercial paper. Commercial paper started to dry up. Our oxygen what we live off is commercial paper, repo lines, medium term notes. That's what we do. And, because most of our business is not done in the bank. It will be but not done in the bank now. As a result we rely upon those three instruments. Commercial paper started to dry up. Lack of confidence. Concerns over subprime thing. Subprime thing, CNBC, all you heard subprime. There was never that amounts of subprime loans being done in this country ever you think every loan would be subprime. That began to have material effect on psyche of the market everybody thought everything was subprime. Commercial paper started pulling back. Then we had to rely more on repo lines pressure of all mortgage company providers were on the banks. We need a lot of asks from the banks. They had limitations what they could do. They began pulling back. That began a whole series of events that led where we are today. You got to remember we’re a survivor. You're interviewing me. Look other day green point, new century, Ameriquest go right down the companies been around for years are gone. American home. Homebanc. All these companies are gone. So it has had a material effect on the market. Now in one sense that's good news for Countrywide. Hate that happening to anybody but, at end of the day, we're only game left in town.

Bartiromo: Aren't you doing exactly what you criticized others for doing, taking market share in the down market? I mean isn't that at end of the day, where we are right now as a result of that? You're taking market share in a tough market?

Mozilo: Yeah. I criticized I don't think I’ve criticized that's what I should do, take market share when I have opportunities to take it. I think what I said I’m against taking share just for the sake of taking market share even though it's jeopardizing the company. Where you're doing it at losses I’m absolutely opposed to critical of s&ls in the past. Critical of subprime companies in the past doing that I’m not critical I think that is my responsibility to seize market share when the opportunities to do that when I’m doing high quality loans at good spreads.

Bartiromo: Two final questions, Angelo. Last time you joined us on CNBC you told me never in your 50 plus years business have you seen that housing does not take us in or out of a recession.

Mozilo: That's right.

Bartiromo: is housing going to take us into recession?

Mozilo: I still think so. I've been proven wrong so far. I can't believe when you're having level of delinquencies. Equity is gone. Tide has gone out that this doesn't have material effect a on psyche of American people and eventually on their wallet.

Bartiromo: finally what will this company look like in six months or a year? Obviously subprime is gone. Alt-a. He locks. Jumboes blew up last week. Don't you have to become a much smaller originator?

Mozilo: I’m not sure. We have to become much stronger. Balance sheet has to be much stronger. $2 billion helps a lot. Will continue to strengthen that balance sheet. What shaping even though volumes all are down and our volumes are down, but at end of the day we could be, we could be doing very substantial volumes for high quality loans because there is nobody else in town. Although the pie is smaller I think we'll get a bigger part of the pie and be more important than we are today.

Bartiromo: For joining us. Thanks for being here. Angelo Mozilo, chairman and CEO Countrywide Financial.