Thursday, October 09, 2008

Despite Bank Of America/Countrywide Settlement, Some Subprime Litigation Against It Continues

In Carson City, Nevada, The Mercury News reports:
  • A Reno lawyer is seeking class-action status for several U.S. District Court lawsuits alleging predatory practices by major lenders that have left his clients facing foreclosures and threatened sales of their homes. Bob Hager said Tuesday that the clients include his law partner, Treva Hearne, who is battling with Countrywide Financial representatives who moved ahead with foreclosure proceedings on three properties she owns even though she was current on all mortgage payments.(1)


  • The [Bank Of America / Countrywide] settlement, which according to preliminary Countrywide estimates could benefit more than 11,000 Nevadans, has many troubling aspects and basically amounts to "Countrywide promising to be a kinder, gentler predatory lender and the state agreeing to it," Hager said.

  • "It's a framework for the future resolution of those loans that are underperforming, but it does not deal at all in an equitable fashion with those victimized already by Countrywide," he added.

Hager reportedly said that, as part of his litigation effort, he wants to challenge a settlement announced Monday by Bank of America, which has acquired Countrywide and faces a lawsuit over alleged deceptive mortgage practices, according to the story.

For more, see Lawsuits allege predatory lending practices.

(1) According to the story, besides Countrywide, the lawsuits filed in federal court in Reno name Washington Mutual Home Loans, Impact Finance Group, Southern Pacific Mortgage Co., GRP Financial Services Corp. and IndyMac Bank. Hager said he also represents borrowers "victimized" by Wells Fargo, the article reports.