Countrywide, a subprime lender, who has been accused of numerous deceptive and overly abusive tactics (bordering on and often turning to the illegal) to sell loans, is being taken to task by Illinois Attorney General!
The lawsuit against Countrywide Financial Corp. (CFC, Fortune 500) – planned for the same day shareholders were scheduled to vote on the company’s takeover by Bank of America Corp. (BAC, Fortune 500) – stems from information from documents subpoenaed by the state beginning last fall, as the number of foreclosures nationwide began to skyrocket.
“Countrywide’s conduct has contributed to the high number of foreclosures in Illinois and caused significant harm to the public, the market, and scores of Illinois borrowers and homeowners,” according to a draft of the lawsuit provided by Attorney General Lisa Madigan’s office Tuesday evening.
Yet, this CNNMoney piece has the audacity to try to make you feel sorry for Countrywide’s part in the current financial crisis.
Countrywide, like many in the mortgage industry, has suffered under the weight of the subprime fallout as thousands of customers default on home loans.
Suffered???? This is hardly an appropriate sentence to appear in this article. Countrywide has caused their own problems — you know, they are responsible for their actions; they should accept the consequences for their actions; (what other addages can you think off?)
But, I digress. Attorney General Lisa Madigan’s office has some specifics they want from Countrywide:
Among other things, Madigan wants Countrywide to pay restitution to all affected consumers who lost their homes or loans. She also asks for 90 days to review any loans that are in or near foreclosure to see if borrowers can pursue affordable options.
I think this case, including any plea deal, should be closely watched by all states, especially if they aren’t investigating Countrywide and other sub-prime loan companies that have lead to ridiculously high foreclosure rates. (TN, are you listening?)
According to Realtytrac(R), in May Tennessee’s foreclosure rate ranked 14th in the nation among the states, with one in every 639 households receiving a foreclosure filing. By comparison, Alabama’s foreclosure rate was one in every 4,203 households, which earned it the number 45th spot among the states.
[...] own fault, many people facing foreclosure were coerced by strong-arm tactics or more specifically fraudulent practices, into their current situation. Of course, true to their narrow thinking, there is a threat of [...]