Wednesday, June 25, 2008

California AG Tags Countrywide, Mozilo With Civil Suit Related To Shaky Loans; Seeks To Restore To Borrowers Money/Property Lost Thru Deceptive Acts

In Los Angeles, California, Reuters reports:

  • California Attorney General Jerry Brown sued Countrywide Financial Corp and two top officers on Wednesday to stop the mortgage loan company from allegedly perpetrating a scheme to "mass produce loans for sale on the secondary market."

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  • Brown's office said the lawsuit, filed in Los Angeles Superior Court, also seeks unspecified restitution for homeowners(1) who were allegedly conned into risky, costly loans they did not understand by brokers desperate to meet unrealistic production goals. The suit further accuses Countrywide Chairman and Chief Executive Angelo Mozilo and David Sambol, president of Countrywide Home Loans Inc, of purposely easing underwriting standards for mortgages and home equity lines of credit in a play to double to company's share of the U.S. mortgage market.

  • The Calabasas, California-based lender stands accused of deceptive advertising and unfair competition for its alleged misleading practice of emphasizing low introductory loan rates while hiding risky or costly terms and of routinely soliciting buyers to refinance shortly after their initial loans closed.

For more, see Calif AG sues Countrywide over alleged loan scheme.

From the California AG's Office:

Go here, Go here and Go here for more on other Countrywide lawsuits & other problems.

(1) California consumers who believe they have been victimized by Countrywide Consumers should file a complaint by contact the Attorney General’s Public Inquiry Unit in writing at Attorney General's Office California Department of Justice Attn: Public Inquiry Unit P.O. Box 944255, Sacramento, California or through an online complaint form: http://ag.ca.gov/contact/complaint_form.php?cmplt=CL countrywide consumer problems

posted by Home Equity Theft Reporter at 2:02 PM