Pension group seeks Countrywide CEO ouster

CALABASAS, Calif., Oct. 23 (UPI) -- A group representing pension funds is trying to oust the chairman of U.S. lender Countrywide Financial, citing investigations and the company's sub-prime woes.

Change to Win, representing union pension funds holding an estimated 3.5 million Countrywide shares, wrote to the company's board of directors, asking that it obtain the resignation of Angelo Mozilo, Countrywide chairman and chief executive, the Telegraph reported Tuesday.

The letter to Harley Snyder, Countrywide's senior director, refers to the recent investigation by the Securities and Exchange Commission into Mozilo's sales of share options, as well as the company's sub-prime mortgage issues. The group also alleged Mozilo tolerated a "culture of non-compliance" at Countrywide, and referred to a recent report that indicated borrowers were steered into unsuitable high-cost loans, the British newspaper said.

The American Federation of State, County and Municipal Employees also wrote to Snyder, demanding that Countrywide splits Mozilo's two roles and names an independent director as chairman.

On Tuesday, the Calabasas, Calif., company revealed a $16 billion outreach program for its borrowers who are at risk of defaulting on their mortgages.