Mozilo's compensation during the United States housing bubble of 2001–06 later came under scrutiny. During that period, his total compensation (including salary, bonuses, options and restricted stock) approached $470 million.[6] His compensation also included payment for equity memberships and annual country club dues at Sherwood Country Club in Thousand Oaks, CA, The Quarry at La Quinta golf club in La Quinta, California and at the Robert Trent Jones Golf Club in Gainesville, Virginia.

On October 15, 2010, Mozilo reached a settlement with the Securities and Exchange Commission over securities fraud and insider trading charges. Mozilo agreed to pay $67.5 million in fines, and accepted a lifetime ban from serving as an officer or director of any public company.