Countrywide is the nation's leader in home loan lending. It has been largely criticized for agitating the current mortgage crisis if not out right causing it. Today California and Illinois both filed suits against the company, claiming that Countrywide systematically engaged in the practice of tricking customers into signing up for mortgage products that offered very attractive initial terms, but which then converted to significantly higher interest rates or balloon payments.
This afternoon, Christine Gregoir, governor of Washington announced that the State of WA will suspend Countrywide's license to write loans in the state, as the result of investigators finding evidence of Countrywide targeting minorities for similar "predatory" practices.
This all comes on the same day that the board of Countrywide approved a buyout by Bank of America to the tune of 2.8 billion dollars to take effect July 1st.
Countrywide's CEO Angelo Mozilo is also under investigation by the Securities and Exchange Commission, for allegedly, selling a significant number of shares on "insider information" prior to the stock price collapse and providing "favorable loans" to politically connected friends.
All in all, not a good day for Mozilo and Countrywide.
Here is the most ballanced account that I can find:
http://news.yahoo.com/s/ap/20080625/ap_on_bi_ge/countrywide_financial_4
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