San Diego City Attorney Keeps Promise; Files Predatory Loan Suit Against Third Home Mortgage Lender

In San Diego, California, Legal Newsline reports:

• Following lawsuits against Countrywide Financial Corp. and Washington Mutual, San Diego City Attorney Mike Aguirre filed a suit on Tuesday taking on a third home mortgage lender for its alleged predatory lending practices. The latest suit, filed in the San Diego Superior Court is against Wachovia, parent company of Golden West Financial Corp., which the bank bought in October, 2006. The lawsuit asserts that Golden West sold loans without proper consideration or verification of a buyer's ability to pay, including selling risky loans that would have rapidly escalating payments.

For more, see San Diego City Attorney sues Wachovia.