The Collar

Another State—Florida—Sues Countrywide

By Luke Mullins

Posted: July 2, 2008

Last week, attorneys general in California and Illinois filed lawsuits against beleaguered mortgage lender Countrywide. On Monday, Florida threw its hat in the ring as well:

From Reuters:

Florida sued mortgage lender Countrywide Financial Corp. on Monday for predatory lending practices, alleging the company at the center of the U.S. mortgage crisis made subprime loans to people who could not repay them.

The Florida attorney general filed the lawsuit, which names Countrywide Chief Executive Angelo Mozilo as a defendant, in state court in Broward County, Florida.

So where might Countrywide's next legal jab come from?

From Portfolio:

Attorneys general from Connecticut and Iowa have also indicated they are weighing suits. The states seek restitution for borrowers who may have been victims of Countrywide's allegedly deceptive business practices. Senator Charles Schumer has also asked the Federal Trade Commission to investigate Countrywide's treatment of homeowners in bankruptcy.

include me in the lawsuit with countrywide also

countrywide reps are all crooks that need to go to jail

i am doing the best i can to stay current and they want me to get behind before they will help me

roy compton of FL @ Mar 19, 2009 12:13:45 PM

Countywide

I too was swindled by Countrywide. With a 12% fixed rate, requested a interest rate reduction, got a modification that kept the 12% but was lucky enought to have them increase my monthly payment. My account was screwed up from day one. Initially went with Castle Point was advised first payment was in March. Got a letter from Countrywide late February advising I was late and requested two months of payments. Explained again and again to deaf ears. Now over 2 years later they are kind enought to have 20 - 30 day lates on my credit while the entire time I have been making the monthly payment on time.

Something must be done to this company. In their wisdom they gave all that money to the banks who in turn did not disburse to any customers but modified their loans, with the same rate, and increased their monthly payments. What they should have done was to immediately place an interest rate cap on loans. So what if the banks lost money. They could have been provided a form to recoup from the government instead of them just giving out millions upon millions and not requesting, sorry, demanding detail on where the funds went.

If there is a law suit I too would like to be added to the list.

Obama Should have Listened First of PA @ Feb 04, 2009 13:15:27 PM

Countrywide

I called countrywide today 1/26/09 to see about lowering my payments.Because I was laid off from work. The woman I talked to told me there was no plan for me with the mortgage I have. And I asked what kind did I have. She said you have a fixed rate mortgage. So what I want to know is am I being discrimanated against because I have a fixed rate mortgage. Why would they want someone to lose their house because they got laid off?

Darlene of AL @ Jan 26, 2009 16:10:13 PM

Add Your Thoughts
About You

advertisement

The Collar

Luke Mullins is an associate editor at U.S. News, covering banking, real estate, and white-collar crime. He came to the magazine from the American Banker, a financial services daily newspaper, after a stint in the Peace Corps in West Africa and 18 months coaching baseball in the Dominican Republic. Mullins earned a master's degree in journalism from Syracuse University in 2005 and now lives in Washington, D.C., where he grew up. He has written about white-collar criminals for the American magazine, and his work was included in 20 Something Essays by 20 Something Writers: The Best New Voices of 2006, a Random House anthology that appeared on the Boston Globe's bestseller list.

People who read this also read ...

Best of The Collar

advertisement