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States Begin to Fight Back!! Countrywide in trouble...AGAIN

It appears the state of Illinois has had enough. The state of Illinois is suing "Countrywide Mtg. Co. claiming it has participated in deceiving homebuyers. If you ask me it was only a matter of time for States to begin fighting back against an "It's not our fault" attitude most lenders have made their creed. Mortgage brokers and Lenders have participated in their fair share of causing our Nations greatest housing colapse in almost 30 years!

In recent months, The city of Cleveland, OH sued 21 banks due to terrible subprime lending guidlines. Massachusetts sued a prominate mortgage brokerage (Lehi Mortgage Services, Inc.) and now Illinois takes a stab at it by going after Countrywide.

Countrywide can't seem to buy a break! Their CEO Angelo Mozilo cashed in $138 Milion in stock options right before the mortgage crash and is being investigated. They are on the verge of being bought out for a measly 4 Billion by Bank of America corp and now they are being sued by a State no less!!!

My feelings are lenders are getting off easy in many cases around the US. Mortgage Brokers should be investigated in their part of this mortgage "SET-UP"and homeowners should have known better. Have you ever heard of the saying it's too good to be true? I've spoken to many clients who knew their loans were a bit shaky when the signed the docs, yet they took the plunge anyway.

If Illinois wins in a court preceeding, it is a foregone conclusion that more states will join in on pressing Lenders to share the responsibility for their part played in creating this economic downward spiral.

As always I'd love to hear your views...

See ya soon!

Posted by Clark Garrison, "LOAN MODIFICATIONS" on 06/25/2008 01:24 AM

Comments (17)

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17 Comments on States Begin to Fight Back!! Countrywide in trouble...AGAIN

JUN

2008

It's about time!!! You're right. I think the lenders have had crappy attitudes all along and tried to push the blame onto every other sector but themselves.

Yes, I totally agree! Mortgage brokers should also be investigated since many of them brokered these loans.

I respectfully disagree with Leolinda. The brokers should be investigated if they are suspected in mortgage fraud. If they are, then throw the book at them.

If not, then they had nothing to do with it! Mortgage brokers didn't come up with any of these questionable sub prime loans, the lenders did. Mortgage brokers didn't come up with the underwritting criteria, the banks did. Mortgage brokers could only sell loans that the banks were offering. If a mortgage broker didn't give someone a loan, the borrower would walk down the street to the next loan office and get it there.

I think anyone is innocent until proven guilty....unless it's obvious.

People always look at professionals in our field as gold diggers and some think we don't have a conscience. That is simply not true. While we are all trying to make a living, we don't all do it ruthlessly the way some people think.

It's not uncommon for a client to run from lender to lender until they find the right product for them. I've seen clients blow off truthful mortgage brokers that advised them correctly and sign on the dotted line with another that told them what they wanted to hear.

If fraud can be proven, then anyone involved should be punished, including the borrower. There are a lot of causes that lead to our current situation, suing Countrywide won't help things turn around any quicker.

Klarque, hey you guys aren't the only ones...today's Sac Bee headline "California sues Countrywide over loan practices.

I'd say everyone jumping on the bandwagon...and from what I hear they have a ton of REO files...

In my opinion there is more culpability with the Lenders than with their clients. Anyone know how to say, NO. I think it's time that the Lenders learned the word and use it when a client is not credit worthy.

Don't get me started...

Whoops! Looks like my Governor doesn't agree with me. Just saw on the news that Washington State is looking into pulling Countrywide's license here. This could get very ugly!

JUN

2008

Countrywide deceive, naaaa, say it isn't so.

Yes it is so. Going to get worse before it gets better. People or(businesses) who do things in the dark will always come to the light.

JUL

2008

Child (IndyMac) learned from it's parents - and see where it got them!

I think this is a long time coming... Countrywide have the nerve now to not even deal fairly with the short sale requests or the homeowners. I think this should spread all over the US and make it a national class action....

IndyMac too.

OCT

2008

I think Countrywide should be held accountable for their deceptive loans. All the people who were apart of the home purchase should be punished for making money from other peoples money. To say the least that some of them lost money and their homes...These loans should have never been offered and this is fraud...

I think Countrywide is nothing but a Company that had crooks working for them. The Countrywide employees used people to make money off others..I think all of them should be severly pentalized and face their responsiblities.

http://www.ccartoday.com/members/forms_docs/updates/2006/The_Update_September_2006.pdf

FEB

A friend of mine is going to be foreclosed upon within the next few weeks because of one of Countrywide's "brokers". She and her husband both read the mortgage agreement they would be signing but the "broker" said he had another appointment and left, saying he'd return with the papers for them to sign. It was for a 30-year fixed rate mtg....or so they thought. When the cheater returned, they never suspected that the papers had been switched and didn't bother to re-read them before signing them. They couldn't prove to the contrary, but their papers had been changed from a 30-year fixed mtg. to a 40-year ARM! Now they are a couple of payments in arrears; hubby's job has been downsized, property has lost half of its former value. She is seeking to refinance with present property valuation, but upon calling Countrywide, the phonecalls are routed to some backwater hole in India of all places; nobody can understand what she's asking and gives her some canned answer instead of solutions. Bank of America, Countrywide's new owner, says it doesn't have anything to do with her mtg. Does anybody know of some way to help this family?

DesertBrat, What your friends need to do is consult a real estate attorney about the matter ASAP.

I am not an attorney and do not give legal advice. If everything you say is true and accurate, they may benefit greatly from legal representation.

http://www.hud.gov/offices/hsg/sfh/res/respamor.cfm

At the very least they should contact their state's attorney general office and ask to be referred to whatever agency oversees lending in the state they currently reside.

AUG

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