Countrywide Settlement Offer Rejected In Alleged Phony Docs Case

In Pittsburgh, Pennsylvania, The Wall Street Journal reports:

• A bankruptcy judge has rejected Countrywide Financial Corp.'s proposal to settle accusations that it fabricated evidence used in a bid to foreclose on a home, saying he wants to know more about the alleged false documents. Judge Thomas Agresti of the U.S. Bankruptcy Court in Pittsburgh on Tuesday dismissed the company's request to settle a dispute with Sharon Diane Hill, a Pittsburgh-area woman who was threatened with foreclosure by the country's largest home lender.

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• Details of the settlement proposal were filed under seal, which Judge Agresti said was unjustified. He also said the settlement documents were deficient because they failed to reveal what Ms. Hill's lawyers found out about the alleged fabricated evidence.

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• On Tuesday, Judge Agresti said he wouldn't approve a settlement until he got to the bottom of Countrywide's suspected forgeries. He said he was concerned about "the potential effect that a settlement in this case may have in other cases involving Countrywide."

For more, see Judge Rejects Countrywide Plan To Settle Suit on Foreclosure Bid.

See also, Subprime Legal: Judge Dings C’wide Settlement Over Alleged Forgeries.

Go here for other posts on the Countrywide matter in the Pittsburgh federal bankruptcy court.

Go here, Go here and Go here for more on recent Countrywide problems with consumers.