Illinois Sues Countrywide - Democratic Underground

Zenlitened

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Tue Jun-24-08 09:36 PM
Original message

Illinois Sues Countrywide

Source: New York Times

The Illinois attorney general is suing Countrywide Financial, the troubled mortgage lender, and Angelo R. Mozilo, its chief executive, contending that the company and its executives defrauded borrowers in the state by selling them costly and defective loans that quickly went into foreclosure.

(snip)

The civil lawsuit asks for an unspecified amount of monetary damages and requests that the court require Countrywide to rescind or reform all the questionable loans it sold from 2004 through the present.

Read more: http://www.nytimes.com/2008/06/25/business/25mortgage.html?hp

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mrreowwr_kittty

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Tue Jun-24-08 09:37 PM
Response to Original message

1. Good. I hope more states follow suit. nt

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flvegan

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Tue Jun-24-08 09:40 PM
Response to Original message

2. This could be good.

They'll likely rollover and give up fraudulent brokers and the rest of the flotsam and jetsam of the real estate world, I hope.

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TlalocW

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Tue Jun-24-08 09:43 PM
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3. I have my mortgage through Countrywide...

Any chance that they'll just totally collapse to the point that no other mortgage company can salvage anything from them, and I'll be living free and clear? Oh, please oh please oh please? :)

TlalocW

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dixiegrrrrl

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Tue Jun-24-08 11:55 PM
Response to Reply #3

5. I think the Bank of America buyout is still going thru

so BOA will "own" mortgages with Countrywide, and the payment goes to them once they send a transfer letter to homeowners. That's what a mortgage broker told me when I called about my Countrywide mortgage.
I have a "good" mortgage, very affordable.
The more interesting question is who really owns the actual mortgage if Countrywide mixed subprime along with my/our prime mortgages and sold the package.
Judges have been throwing out foreclosures because the lender cannot prove it holds the actual mortgage.

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TheMadMonk

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Wed Jun-25-08 02:03 AM
Response to Reply #5

6. If I correctly recall a post from way back when this mess was just...

...starting to emerge, there's a nasty sting in such buyouts.

Your loan agreement is with Countrywide and *NOT* BOA. AND BOA is NOT obligated to honour the terms of any agreement which you might have with Countrywide. They many demand of you any terms they so please, including making the entire outstanding amount of the loan payable immediately.

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alcibiades_mystery

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Wed Jun-25-08 06:39 AM
Response to Reply #6

8. Nonsense

They purchase not just the debt but the conditions. You heard wrong.

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bpj62

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Wed Jun-25-08 10:26 AM
Response to Reply #6

9. Selling of Mortgages

The lenders were bundling the mortgages both prime and subprime and that is where the problem lies. The investors did not do a thorough job of going through the loans that they bought and it has come back to bite them. When a lender sells a loan they sell the terms as well. As long as you are current on your mortgage the lender cannot call the loan in. The note would require a "Demand Feature" and most loans do not have that clause anymore. You must be in default or have violated some term in your note for the lender to demand payment in full. I conduct real estate settlements so I review notes everyday for our clients.

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Sanity Claws

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Wed Jun-25-08 05:22 AM
Response to Reply #5

7. Who holds the note?

The note holder can bring suit. It doesn't matter who owns the securities in which the mortgages were bundled. In NYS, only the note holder has standing to bring suit. I imagine it's similar in other states.

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skyounkin

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Tue Jun-24-08 10:21 PM
Response to Original message

4. Good, and I agree

I hope all states follow suit! Why is this company still in business? Really? Why haven't they been melted down and dissolved into other smaller comapnies?

Oh, yeah, thanx reagan, you ass.

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