Per National Mortgage News this morning:
... Pouring cold water on statements by other mortgage executives, including Countrywide's own Todd Dal Porto, Mr. Mozilo said the current subprime collapse is causing a paradigm shift that will bring down an avalanche of regulatory scrutiny ... he said, "The Street stepped up to provide liquidity irrespective of underwriting" as New Century and others "went to the market time after time to get more capital" for exotic loans. The mortgage industry itself will be the real victim, Mr. Mozilo stated.
Say what you will about Countrywide and Angelo Mozilo, but he's usually an unbelievably straight shooter when it comes to market assessment. And the above doesn't get more blunt: the regulators are coming, we can't stop them, and things are going to get worse before they get better.