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State of Illinois: Suing Countrywide Mtg.

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I wonder if "Landshark" will be brought up in the case.

Wonder how many included over inflated "Landshark" appraisals?
 
Looks like they're going after them for "steering", possible RESPA issues, fraud. Landsafe itself will most likely not be considered, but they may look at individual appraisers depending on what they find after they subponea the docs.
 
So is doing the state of California
http://www.latimes.com/business/la-fi-country26-2008jun26,0,4864584.story
Jerry Brown says the nation's largest mortgage lender deceived borrowers about the risks of adjustable-rate loans. Illinois' attorney general is also expected to sue Countrywide today.

Countrywide Financial Corp. and its chief executive, Angelo Mozilo, were sued today by California Atty. Gen. Jerry Brown, who accused them of forcing thousands of Californians into foreclosure by deceptively marketing risky adjustable-rate mortgages to borrowers who didn't understand that their monthly payments would one day "explode."

In a complaint filed in Los Angeles County Superior Court, Brown alleges that Countrywide and its top executives, beginning in 2004, plotted to loosen or ignore lending standards so they could make more sub-prime mortgages and other adjustable-rate loans that were promoted by emphasizing low initial rates.
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[size=+1]But [/size]
The attorney general's sister, Kathleen Brown, head of West Coast municipal finance at Goldman Sachs & Co., served on Countrywide's board from March 2005 through March 2007, when the alleged bad practices were occurring. Neither she nor other nonexecutive directors of Countrywide were named as defendants
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I do hope that their servicing problems come to light in this as well. CW is notorious for managing to foul up things like flood insurance and payment application. Always seems to be in the borrower's detriment, and thier favor. :leeann:
 
Florida sues Countrywide over mortgages

MIAMI (Reuters) - Florida sued Countrywide Financial Corp and its chief executive, Angelo Mozilo, on Monday, alleging it engaged in unfair and deceptive trade practices in mortgage lending.

The Florida Attorney General's Office filed the lawsuit in state court in Broward County, Florida.

http://www.reuters.com/article/ousiv/idUSN3044157620080630
 
Michael Tipton said:
MIAMI (Reuters) - Florida sued Countrywide Financial Corp and its chief executive, Angelo Mozilo, on Monday, alleging it engaged in unfair and deceptive trade practices in mortgage lending.

The Florida Attorney General's Office filed the lawsuit in state court in Broward County, Florida.

http://www.reuters.com/article/ousiv/idUSN3044157620080630
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Quote: the complaint said Countrywide's own underwriters were "threatened with termination for attempting to verify a borrower's ability to pay, or otherwise impeding loan approval."

My guess is there is a fair number of former CW employees who will testify to that. I know two former CW LOs personally who made that claim long before the article was published, actually, almost 2 years ago.

Will be interesting to see if Bill M. earns his money on this one.

If he's guilty Angelo deserves to do the prison-cell two-step...wiff Bubba and all his home-boys, one right after another.
 
Good bye Countrywide

Good riddens to a corrupt company.

Hope their stockholders get the "max value" for their shares.
 
http://www.heraldtribune.com/article/20080608/ZNYT01/806080771/1668

The entire article is long, but a good read.

The problems facing Countrywide’s servicing unit go beyond a weak housing market and the credit crisis. In a number of court cases, judges are halting Countrywide foreclosures because they were based on servicing errors or improprieties.
Two years after foreclosing on the Iron City, Tenn., home of Connie and David Prince, Countrywide said in court documents that it had “inadvertently” failed to credit the Princes with payments they had made. This forced them into foreclosure.
Two months ago, Countrywide agreed to reverse the foreclosure sale and reinstate the Princes’ mortgage “at the correct amount after accounting for any and all accounting errors.”
Peter T. Skeie, a lawyer in Nashville who represents the Princes, said they never should have been in foreclosure. “It was a Countrywide error and Countrywide has graciously offered to forgive itself of its error” and then return the Princes to where they were before.
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And...
The final wild card in the Countrywide deck relates to shareholder lawsuits against it and continuing investigations into its practices. The Securities and Exchange Commission is examining its accounting and insider stock transactions. The Federal Trade Commission is investigating Countrywide as part of a broad inquiry into practices of lenders and loan servicers. The F.B.I. is looking at possible loan fraud, and regulators in Illinois and California are also investigating the company; of interest to the two states is whether it discriminated against minority borrowers.
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B of A is firm on this deal? I think it might be time to short B of A stock for about the mid September timeframe.
 
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