In charging former Countrywide CEO Angelo Mozilo with fraud, the Securities and Exchange Commission (SEC) is zeroing in on the lender's payment option ARM business, a controversial product that Mozilo initially embraced and then later cursed.

According to figures collected by National Mortgage News, Countrywide Financial Corp. was the nation's largest POA lender in 2006, a year in which Mozilo wrote several memos cited by the SEC in its complaint. (CFC was also the largest POA funder in 2007, originating a record $86 billion in these notes which eventually can become negatively amortizing.)

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